Question $4(2$ points$)$

Norwest is planning on purchasing a welding machine. The expected cost of this machine is $$60,000,$ and it is expected to have a useful life of $7$ years with an estimated salvage value of $$4,000.$ The machine is expected to produce cash savings of $$20,000$ per year in reduced labor costs and the cash operating costs to run this machine are estimated to be $$6,000$ per year. Assuming Norwest is in the $34\%$ tax bracket and has a minimum desired rate of return of $14\%$ on this investment.

Determine the payback period, the accounting rate of return, and the net present value for this investment. $($Indicate answers to $2$ decimal places$)$