$3.$ Annual selling expenses are $\backslash (\backslash$$ $122,000\backslash )$ with the current equipment. Because the new equipment would produce a greater number of units to be sold, annual selling expenses are expected to increase by $\backslash (10\backslash \%\backslash )$ if it is purchased. $4.$ Annual administrative expenses are expected to be $\backslash (\backslash$$ $76,000\backslash )$ with the old machine, and $\backslash (\backslash$$ $85,000\backslash )$ with the new machine. $5.$ The current book value of the existing machine is $\backslash (\backslash$$ $30,000\backslash ).$ Crane uses straight$-$line depreciation. $6.$ Crane's management has a required rate of return of $\backslash (15\backslash \%\backslash )$ on its investment and a cash payback period of no more than $3$ years. Answer the following. $($Ignore income tax effects.$)$ Click here to view PV table. Calculate the annual rate of return for the new machine. $($Round answer to $1$ decimal place, e$.$g$.15\mathrm{.}5\backslash \%.)$ Annual rate of return $\backslash \%$ eTextbook and Media Calculate the annual rate of return for the new machine. $($Round answer to $1$ decimal place, e$.$g$.15\mathrm{.}5\backslash \%.)$

Annual rate of return

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Compute the cash payback period for the new machine. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Cash payback period years

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Your answer is incorrect.

Compute the net present value of the new machine. $($If the net present value is negative, use either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

NPV $\backslash$$

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