XYZ Company is considering the purchase of a new machine that would cost $800,000. The machine would have a useful life of 8 years. XYZ Company plans on using straight-line depreciation with an estimated salvage value of $0. XYZ Company has a hurdle rate of 12% and is subject to an income tax rate of 30%. The annual cash income is estimated to be $200.000 1. The Accounting Rate of Return (AROR) is: A. 7.75% B. 8.75% C. 9.75% D. 10.75% 2. The Net Present Value (NPV) is: A. $64,560 B. $54,560 C. $44,560 D. $34,560 3. The Profitability Index (PI) is: 1 A. 1.36 B. 1.26 C. 1.16 D. 1.06 4. The Payback period is: A. 4.71 years B. 4.81 years C. 4.91 years D. 5.01 years 5. Using interpolation, the Internal Rate of Return (IRR) is: A. 10.6% B. 11.6% C. 12.6% D. 13.6%