Diamond Company is considering purchasing a machine that would cost $756,000 and have a useful life of 8 years. The machine would reduce cash...

Diamond Company is considering purchasing a machine that would cost $756,000 and have a useful life of 8 years. The machine would reduce cash operating costs by $132,632 per year. The machine would have a salvage value of $151,200 at the end of the project.

I am a beginner. Please give formula not only direct substitution. Thanks.

           Compute:

a.      Net present value

b.     Internal rate of return

c.      Profitability index

d.     Payback period

e.      Simple rate of return

f.       Should the company purchase the machine? Why or why not?