Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $384,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

Year Cash Revenues Cash Expenses

1.....................$510,000.............................$360,000

2.......................510,000..............................360,000

3.......................510,000..............................360,000

4.......................510,000..............................360,000

5.......................510,000..............................360,000

Required:

1. Compute the payback period for the NC equipment.

2. Compute the NC equipment's ARR. Round the percentage to one decimal place.

3. Compute the investment's NPV, assuming a required rate of return of 10%.

4. Compute the investment's IRR.