a) Compute the net present value NPV=$ Enter negative numbers with a minus sign, i.e., -100 not (\$100) or (100). Should you invest? Why? YES -- the NPV is negative, which indicates that the investment will reduce costs NO -- the NPV is negative, which indicates that the investment is unprofitable YES -- the NPV is positive, which indicates that the investment is profitable b) Compute the payback period. payback period = years c) Compute the accounting rate of return (ARR). To compute ARR, first compute: annual depreciation =$ annual income =$ average investment =$ ARR=% If your answer is 10%, enter 10 without the percent sign. d) Which of the three methods in (a)-(c) should you use in real life? NPV only payback method only ARR only always use all three methods to reach the best decision