Question: MS High Tech Inc. is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the

MS High Tech Inc. is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year one, $55,000 in year two, $65,000 in year three, and $40,000 in year four. The firms required rate of return is 9%. What is the payback period of this project?

What is the net present value (NPV) of the project?

What is the internal rate of return (IRR) of this project?

What is the profitability index (PI) of this project?

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