A company is considering purchasing a new second machine in order to expand their business. The information for the new machine is:

Cost= $100,000

Increase in contribution margin= $25,000

Life of the machine= 5 years

Required rate of return = 10%

Calculate the following:

a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar)

b. Payback period (Round your answer to two decimal places.)

c. Discounted payback period (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX%.)

d. Internal rate of return (Round the rate to two decimal places, X.XX%.)

e. Accrual accounting rate of return based on net initial investment (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX%.