View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. Coronado Inc. wants to purchase a new machine for $40,070, excluding $1,200 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,000, and Coronado Inc. expects to sell it for that amount. The new machine would decrease operating costs by $8,500 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value. Click here to view PV table. (a) Determine the cash payback period. (Round cash payback period to 2 decimal places, eg. 10.53.) years Cash payback period (b) Determine the approximate internal rate of return. (Round answer to 0 decimal places, eg. 13 %. For calculation purposes, use 5 decimal (b) Determine the approximate internal rate of return. (Round answer to 0 decimal places, e.g. 13 % places as displayed in the factor table provided.) For calculation purposes, use 5 decimal Internal rate of return % (c) Assuming the company has a required rate of return of 7% , determine whether the new machine should be purchased The investment should be accepted e Textbook and Media Attempts: 2 of 15 used Save for Later Submit Answer Send to Gradebook