Question: Problem 5 NET PRESENT VALUE (15 points) Poe Company has the opportunity to invest in a new project. Project A requires an investment in new

Problem 5 NET PRESENT VALUE (15 points) Poe Company has the opportunity to invest in a new project. Project A requires an investment in new equipment costing $40.000. The projected annual cash inflows of Project A are $4,000 in year 1, $10.000 in year 2, $12,000 in year 3, $13,000 in year 4, year 4, and $22,000 in year 5. The equipment for Project A has no salvage value. Poo uses a 10% discount rate. (a) Calculate the net present value for Project A, (Hint: Prepare a chart like we did in class.) Show your work! (b) Calculate the payback period for Project A. Show your work

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