. The following data are given for the AA&Co:

Initial cost of proposed equipment $50

Estimated useful life 5 (years)

Estimated annual savings in cash operating expenses $ 10

Predicted residual value at the end of the useful life $ 5

Cost of capital 10%

Compute the:

(a) payback period;

(b) present value of estimated annual savings;

(c) present value of estimated residual value;

(d) total present value of estimated cash inflows;

(e) net present value (NPV);

(f) internal rate of return (IRR).