The Lansford Office Equipment Co. is considering the purchase of a new machine that would increase the speed of

manufacturing electronic equipment and save money. The net cost of the new machine is $ 68,000. The annual cash flows have the following projections:

                      Year                 Amount

                       1                    $ 20,000

                       2                       28,000

                       3                       30,000

                       4                       14,000

                       5                        11,000

If the cost of capital is 10 percent, find the following:

A. The Net Present Value

B. The Internal Rate of Return

C. The Payback Period.

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