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CoursHeroTranscribedText: Seattle Hospital, a taxpaying entity, estimates that it can save $30,000 a year in cash operating costs for the next 10 years if it buys a specialpurpose eye-testing machine at a cost of $135,000. No terminal disposal value is expected. Seattle Hospital's required rate of return is 12%. Assume all cash flows occur at year-end except for initial investment amounts Seattle Hospital uses straight-line depreciation. The income tax rate is 34% for all transactions that affect income taxes. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the uire me nts. Requirement 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value (NPR) (Round interim calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is _ . Requirements Calculate the following for the special-purpose eye-testing machine: Net present value Payback period Internal rate of return Accrual accounting rate of return based on net initial investment e. Accrual accounting rate of return based on average investment How would your computations in requirement 1 be affected if the special-purpose machine had a $9,000 terminal disposal value at the end of 10 years? Assume depreciation deductions are based on the $135,000 purchase cost and zero terminal disposal value using the straightline method. Answer briefly in words without further calculations. Enter any number in the edit fields

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