than the current technology. The outlay required is $1,638,000. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows:

Year	Cash Revenues	Cash Expenses
1	$2,129,400	$1,638,000
2	$2,129,400	$1,638,000
3	$2,129,400	$1,638,000
4	$2,129,400	$1,638,000
5	$2,129,400	$1,638,000

Required:

a). Compute the project’s payback period

b). Compute the project’s accounting rate of return

c). Compute the project’s net present value, assuming a required rate of return of 10 percent

d). Compute the project’s internal rate of return.

Answer rating: 100% (QA)

a Compute the projects payback period 1638000 491400 334 years Cash Infl... View the full answer