Reference no: EM132573819

City Hospital?, a nonprofit? organization, estimates that it can save $ 23,000 a year in cash operating costs for the next 8 years if it buys a? special-purpose eye-testing machine at a cost of $ 90 comma 000. No terminal disposal value is expected. City Hospital's required rate of return is 10?%. Assume all cash flows occur at? year-end except for initial investment amounts. City Hospital uses? straight-line depreciation.

Question a. Net present value? (NPV) ?(Use factors to three decimal? places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole? dollar.)

The net present value is:______

Question b. Payback period ?(Round your answer to two decimal? places.)

The number of years for the payback period is:______

Question c. Internal rate of return ?(Round the rate to two decimal? places, X.XX%.)

The internal rate of return (IRR) is:_____

Question d. Accrual accounting rate of return based on net initial investment ?(Round interim calculations to the nearest whole dollar. Round the rate to two decimal? places, X.XX%.)