Two machines are being evaluated for possible acquisition by the Brumfeld Corporation. Forecasts relating to the two machines are:

Required:
For each equipment alternative, compute the following:
(1) The payback period
(2) The accounting rate of return on the original investment, rounded to the nearest tenth of a percent
(3) The accounting rate of return on the average investment, rounded to the nearest tenth of a percent
(4) The net present value and the net present value index, rounded to three decimal places, using an assumed 15% cost of capital
(5) The internal rate of return

Purchase price Estimated economic life Estimated salvage value Annual after-tax cash benefit Machine l Machine2 S500,000 S600,000 8 years none 8 years none ear Year2 Year 3 Year4 Year 5 Year 6 Year 7 Year8 S 125,000 50,000 75,000 100,000 125.000 150,000 200,000 300,000 400,000 125,000 125,000 125,000 125,000 125,000 125,000 125,000