We are considering the purchase of a machine that will cost $$10,000$ and increase profits by $$4,000$ each year over its $5$ year useful life. $$There is no salvage value on the machine at the end of five years. $$Depreciation will be $$1,000$ per year and is not included in the profit listed above. $$The company$$s cost of capital is $8\%.1)$Calculate the Net Present Value:$2)$Calculate the Payback period:$($Hint: $$Use a table format to keep your answer organized$)3)$The company uses straight line depreciation for machines. $$Calculate the Average Accounting Return:$4)$Calculate the Profitability Index: $($HINT: $$remember you already did most of the calculations when you did the NPV$,$ so you can lift numbers from above$)$We are considering the purchase of a machine that will cost $$10,000$ and increase profits by $$4,000$ each year over its $5$ year useful life. $$There is no salvage value on the machine at the end of five years. $$Depreciation will be $$1,000$ per year and is not included in the profit listed above. $$The company$$s cost of capital is $8\%.1)$Calculate the Net Present Value:$2)$Calculate the Payback period:$($Hint: $$Use a table format to keep your answer organized$)3)$The company uses straight line depreciation for machines. $$Calculate the Average Accounting Return:$4)$Calculate the Profitability Index: $($HINT: $$remember you already did most of the calculations when you did the NPV$,$ so you can lift numbers from above$)$