The Harmony Corporation is considering replacing the old binding equipment with a new one at a cost of $276,000. With the new equipment, the company expects to save $46,000 in maintenance costs per year, all cash savings. These savings in maintenance costs represent both an increase in cash flow and an increase in incremental operating income. The new binding equipment has an estimated useful life of 9 years with no salvage value. The company's required rate of return is 10%. The old binding equipment has no salvage value. Round all answers to 2 decimal places. a) Assume the company wants to recover their initial investment on the new equipment in nine years. Based on the payback method, should Harmony Rotor purchase the new equipment? Cash Payback Period: years Should Harmony purchase the new equipment?:

b) If the ARR method is used, should Harmony Rotor purchase the new equipment? ARR: % Should Harmony purchase the new equipment?:

c) If the NPV technique was used, should Harmony Rotor purchase the new equipment? Round your answer to the nearest whole number. NPV:

Should Harmony purchase the new equipment?: