Pollution Prevention, P$2$ Investment cost $\backslash (\backslash$$ $45,770\backslash )$ in increased annual operation plus an annual purchase of $\backslash (\backslash$$ $7,940\backslash )$ of filtration medium. However, management projects the following savings: years. The hurdle rate is $16$ percent for all capital budgeting projects, although the company's cost of capital is $12$ percent.

The present value tables provided in Exhibit $19$B$.1$ and Exhibit $19$B$.2$ must be used to solve the following problems.

Required: $1.$ Based on the financial data provided, prepare a schedule of expected cash flows. Enter cash outflows as negative amounts and cash inflows as positive amounts.

Heaps Company

Schedule of Expected Cash Flow $2.$ What is the payback period? Round your answer to two decimal places. years

$3.$ Calculate the NPV of the closed$-$loop system. Round intermediate calculations and the final answer to the nearest dollar.

Should the company invest in the system? of the lawsuit. Can these factors be quantified?

If so$,$ should they have been included in the analysis?

Payback by years

NPV by $\backslash (\backslash$$ $\backslash )$