I need a complete answer and solution, I will give an upvote.

Span Fruit Company has used a particular canning machine for several years. The machine has a zero salvage value. The company is considering buying a technologically improved machine at a cost of P 232,000. The new machine will save P 50,000 per year after taxes in cash operating costs. If the company decides not to buy the new machine, it can use the old machine for an indefinite time by incurring heavy repair costs. The new machine would have an estimated useful life of eight years.

Direction: Ignore income taxes. Use the payback period method for (a) and (b). Show your computations to support your answers.

1. Compute the time-adjusted rate of return for the new machine.

2. Management thinks the estimated useful life of the new machine may be more or less than eight years. Compute the time-adjusted rate of return for the new machine if its useful life is (1) 5 years and (2) 12 years, instead of 8 years.

3. Suppose the new machines useful life is eight years, but the annual after-tax cost savings are only P 45,000. Compute the time-adjusted rate of return.

4. Assume the annual after-tax cost savings from the new machine will be P 35,000 and its useful life will be 10 years. Compute the time-adjusted rate of return.