. Different Capital Investment Methods. Miko Center Company plans to acquire equipment costing \(\$ 600,000\). Depreciation on the new equipment would be \(\$ 120,000\) each year for five years. The annual cash inflow before income tax from this equipment has been estimated at \(\$ 220,000\). The tax rate is 40 percent.

\section*{Required:}

1. Find the payback period.

2. Find the ARR using the average investment.

3. Find the NPV if Miko's minimum acceptable rate of return is 16 percent.

4. Estimate the IRR from Table 2 (e.g., between 10 and 12 percent).