Question one part A is to be filled in the excel spreadsheet (no work needed just answers), for the rest of part one you can answer in the Word file (also just answers no work needed). Lastly number 2 is multiple choice, each choice is in the parenthesis. thank you in advance

Metro Clinic a tax paying entity estimates that it can save $23,000 a year in cash operating costs for the next 10 years it buys a special purpose eye testing machine at a cost of $90,000. No terminal disposal is expected. Metro clinics required rate of return is 12%. Assume all cash flows occur at year end except for initial investment amounts. Metro clinic uses straight line depreciation. The income tax rate is 30% for all transactions that affect income taxes. 1. Calculate the following for the special purpose eye testing machine Book1.xlsx a. NPV (To be filled in the excel spread sheet attached) b. Payback period (rounded to two decimal points) c. IRR (Rounded to two decimal points) d. AARR based on net initial investment (rounded to two decimal points) e. AARR based on average investment (rounded to two decimal points) 2. How would your computations in question 1 be affected if the special purpose machine had a $12000 terminal disposal value at the end of 10 years? Assum3 depreciation deductions are based on the $90,000 purchase cost and zero terminal disposal value using the straight line method a. NPV would (Increase, Decrease, Not Change) because the disposal value (does not affect average annual operating income, does not affect the net initial investment, reults in a decrease in average annual operating income, results in a decrease to the net initial investment, results in an increase in average annual operating income, results in an increase in the total present value of cash inflows, results in an increase to the net initial investment) b. Payback would (Increase, Decrease, Not Change) because the disposal value (does not affect average annual operating income, does not affect the net initial investment, reults in a decrease in average annual operating income, results in a decrease to the net initial investment, results in an increase in average annual operating income, results in an increase in the total present value of cash inflows, results in an increase to the net initial investment) c. IRR would (Increase, Decrease, Not Change) because the disposal value (does not affect average annual operating income, does not affect the net initial investment, reults in a decrease in average annual operating income, results in a decrease to the net initial investment, results in an increase in average annual operating income, results in an increase in the total present value of cash inflows, results in an increase to the net initial investment) d. AARR would (Increase, Decrease, Not Change) because the disposal value (does not affect average annual operating income, does not affect the net initial investment, reults in a decrease in average annual operating income, results in a decrease to the net initial investment, results in an increase in average annual operating income, results in an increase in the total present value of cash inflows, results in an increase to the net initial investment) Annuity PV Factor at i=14% n=5 Net Present Value: Present Value of Annuity of equal annual net cash inflows Net Initial investment NPV ? Net Cash Inflow * ? Total Present Value = = =