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Question 5 (10 points) Booth 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 $960 000. The NC equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash expenses 1 $1 275 000 $900,000 $1,275,000 $900 000 3 $1,275,000 $900 000 4 $1,275,000 $900 000 5 $1,275,000 $900,000 Required: 1. Compute the payback period for the NC equipment. [2.5 mark] 2. Compute the NC equipment's ARR. [2.5 mark] 3. Compute the investment's NPV, assuming a required rate of return of 10 per cent. [2.5 mark] 4. Compute the investment's IRR, assuming a required rate of return of 10 per cent, should the company buy the machine. [2.5 mark] Paragraph B I U