Question: Numerical Problems: ( 9 points) ( 9 points) A firm is considering a new inventory system that will cost $150,000. The system is expected to
Numerical Problems: ( 9 points) ( 9 points) A firm is considering a new inventory system that will cost $150,000. The system is expected to penerate positive cash Alows over the next four years in the amounts of $39,000 in year 1,$68,000 in year 2,$78,000 in year 3 , and $55,000 in year 4 . The firm's required rate of return is 8%. Caiculate the project's payback period, net present value (NPV), internat rate of roturn (IRA), MIRA, and profitability index, Should we accept this project? Explain. Numerical Problems: ( 9 points) ( 9 points) A firm is considering a new inventory system that will cost $150,000. The system is expected to penerate positive cash Alows over the next four years in the amounts of $39,000 in year 1,$68,000 in year 2,$78,000 in year 3 , and $55,000 in year 4 . The firm's required rate of return is 8%. Caiculate the project's payback period, net present value (NPV), internat rate of roturn (IRA), MIRA, and profitability index, Should we accept this project? Explain
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