Riverbed Pix currently uses a six$-$year$-$old molding machine to manufacture silver picture frames. The company paid $$109,000$ for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $$12,000$ overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells $15,000$ frames per year, generating a total contribution margin of $$106,500.$

Martson Molders currently sells a molding machine that will allow Riverbed Pix to increase production and sales to $20,000$ frames per year. The machine, which has a ten$-$year life, sells for $$144,000$ and would cost $$16,000$ per year to operate. Riverbed Pix's current machine costs only $$8,000$ per year to operate. If Riverbed Pix purchases the new machine, the old machine could be sold at its book value of $$5,000.$ The new machine is expected to have a salvage value of $$20,000$ at the end of its ten$-$year life. Riverbed Pix uses straight$-$line depreciation

$.1-$ Calculate the new machine's net present value assuming a $16\%$ discount rate. $($For calculation purposes, use $4$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal place, e$.$g$.58,971.)$

$2-$ Use Excel or a similar spreadsheet application to calculate the new machine's internal rate of return. $($Round answer to $2$ decimal places, e$.$g$.1\mathrm{.}25\%.)$

$3-$ Calculate the new machine's payback period. $($Round answer to $2$ decimal places, e$.$g$.1\mathrm{.}25.)$