Using the charts and formulas provided to answer the following questions:

Sam's Structures desires to buy a new crane and accessories to help move and install modular buildings. The machine sells for $75,000 and requires working capital of $10,000. Its estimated useful life is six years and it will have a salvage value of $17,560. Sam's depreciates all equipment on a straight line basis. Recovery of working capital will be $10,000 at the end of its useful life. Annual cash savings from the purchase of the machine will be $20,000. Required: a. Compute the net present value at a 14% required rate of return. b. Compute the internal rate of return. 0. Compute the Accounting Rate of Return d. Determine the payback period of the investment. Note: show all workings on this question including the type and amount of all cash inows and outows, and the year of all cashows for your NPV, IRR and payback calculations. Formulas: Residual Income: EBIT -.(Required Rate of Return*Average Op Assets) EVA - WACC given: PAT-(WACC*Capital Employed) ROI = Margin * Turnover = EBIT/ Average Op Assets ARR = Average annual after tax accounting profit (Annual Cash flow- Depreciation)/Net Initial Investment Payback= NII/annual cash flows PAT = PBT -(PBT*TR) = PBT * (1-TR) Where: PAT= Profit after tax, PBT= Profit before tax, TR=tax rate