Assume all cash flows occur at year$-$end except for initial investment amounts. Metro Clinic uses straight$-$line depreciation. The income tax rate is $28\%$ for all transactions that affect income taxes.

$($Click the icon to view the Future Value of $$1$ factors.$)$

$($Click the icon to view the Future Value of Annuity of $$1$ factors.$)$

$($Click the icon to view the Present Value of $$1$ factors.$)$

$($Click the icon to view the Present Value of Annuity of $$1$ factors.$)$

Read the requirements.

Requirement $1.$ Calculate the following for the special$-$purpose eye$-$testing machine:

Net present value $($NPR$)($Round interim calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.$)$

The net present value is $

Requirements

Calculate the following for the special$-$purpose eye$-$testing machine:

a$.$ Net present value

b$.$ Payback period

c$.$ Internal rate of return

d$.$ Accrual accounting rate of return based on net initial investment

e$.$ Accrual accounting rate of return based on average investment

How would your computations in requirement $1$ be affected if the special$-$purpose machine had a

$$15,000$ terminal disposal value at the end of $8$ years? Assume depreciation deductions are

based on the $$90,000$ purchase cost and zero terminal disposal value using the straight$-$line

method. Answer briefly in words without further calculations.