On Your Mark is considering purchasing new manufacturing equipment that costs $1,300,000 and is expected to improve

Question:

On Your Mark is considering purchasing new manufacturing equipment that costs $1,300,000 and is expected to improve cash flows by $500,000 in year 1, $350,000 in year 2, $475,000 in year 3, $450,000 in year 4, and $300,000 in year 5.
Key financial metrics for this project have been calculated and provided by the Finance department (see below). A 14% rate of return and a of less than five years are required for the project. These key metrics must include
(1)
(2) , and
(3) Internal rate of return. (Use 6% as the weighted average cost of capital).
In a memo to the CFO, discuss the metrics and make a recommendation whether to accept or reject the project.

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