Please keep these check figures in mind when calculating answers.

Please remember to round to nearest dollar or decimal place when appropriate. Previous problems submitted have not used these to check final answer. Thank you.

Express Corporation wants to buy a new stamping machine. The machine will provide the company with a new product line: pressed food trays for kitchens. Two machines are being considered; the data for each machine follow Cost of machine Net income Annual net cash inflows Residual value Estimated useful life in years ETZ Machine 350,000 $39,204 $64,404 28,000 LKR Machine 370,000 $48,642 $75,642 $40,000 10 10 The company's minimum rate of return is 16 percent, and the maximum allowable pay back period is 5.0 years. REQUIRED 1. Compute the net present value for each machine. (Round to the nearest dollar.) 2. Compute the accounting rate of return for each machine. (Round to one decimal place.) 3. Compute the payback period for each machine. (Round to one decimal place.)