Please solve Requirement 2 for Payback? Choose the correct answer among the following choices for the 1st blank? decrease increase not change Choose the correct answer among the following choices for the 2nd blank? does not affect cash flows. does not affect cash flows until the end of year 8. does not affect the total present value of cash inflows. results in an additional cash inflow results in an additional cash outflow. results in an increase in cash flows during the payback period.

Manchester Clinic, a taxpaying entity, estimates that it can save $29,000 a year in cash operating costs for the next 8 years if it buys a special-purpose eye-testing machine at a cost of $115,000. No terminal disposal value is expected. Manchester Clinics required rate o return is 14%. Assume a cash flows occur at year end except for initial investment amounts. Manchester Clinic uses straight-line depreciation. The income tax rate is 38% 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 S1 factors ) (Click the icon to view the Present Value of S1 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 a. 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.) b. Payback period (Round your answer to two decimal places.) The payback period is c. Internal rate of return (Round the rate to two decimal places, XXX96) The intenal rate of retun (IRR) is d. 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% The accrual accounting rate of return (AARR) is e. Accrual accounting rate of return based on average investment (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX%.) The accrual accounting rate of return (AARR) is 15.77 %based on average investment. 4.91 years 12.38 %. 7 89 % based on net initial investment