1. IET Inc. is adding a new equipment that will require an investment of $145,700. Managers estimate this investment will generate net cash inflows of $48,570 annually for 5 years. Compute the payback period of this investment to determine whether IET Inc. should purchase the equipment. 2. IET Inc. is shopping for new equipment. Managers are considering two investments. Equipment A costs $100,000 and will last for 5 years, with no residual value. It is expected that this equipment will lower bridge building costs by $32,000 per year. Equipment B is priced at $137,500 and will remain useful for 6 years. It promises annual reduction of bridge building costs of $23,187, and its expected residual value is $7,500. Which equipment offers the higher accounting rate of return? 3. Use the net present value to determine whether IET Inc. should invest in the following projects: Project A: Costs $590,000 and offers 8 annual net cash inflows of $130,000. IET Inc. demands an annual return of 14% on projects like A Project B: Costs $870,000 and offers 9 annual net cash inflows of $160,000. IET Inc. requires an annual return of 12% on projects like B