NPV, PI, and IRR Bossney Corporation's marketing manager is proposing the acquisition of portable computer terminals for all sales representatives. The terminals would simplify and speed up order processing and would produce cost savings of $10,000 per year. The cost of the new terminals is $27,000, including training the sales representatives to use the terminals. Each terminal has a useful life of 5 years with no salvage value. The company evaluates capital projects using a 17 percent cost of capital.

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REQUIRED a. Compute the net present value of the terminals. b. Compute the profitability index. c. Compute the internal rate of return to the nearest whole percent.