Whole Wheat Bakery is considering purchasing a new machine that costs $75,000. The machine is expected to generate after tax cash flows equal to $30,000; $38,000, and $28,000 during its 3-year life. Whole Wheat requires such investment to earn a return equal to at least 12 percent.

a) What is the machine's net present value NPV and IRR based on trial and error?.

b) Would the decision be different if Whole Wheat compares the NPV with a discounted payback period assuming Whole Wheat accepts 3 years as best return on investment period?

c) Do you think the IRR technique has any edge over the NPV and DPBP Techniques? Discuss