Woodard Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $460,800. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

Required:
1. Compute the payback period for the NC equipment.
2. Compute the NC equipment’s ARR. Round the percentage to one decimal place.
3. Compute the investment’s NPV, assuming a required rate of return of 10%.
4. Compute the investment’s IRR.

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Year 1 2 SAWN 3 4 5 Cash Revenues $612,000 612,000 612,000 612,000 612,000 Cash Expenses $432,000 432,000 432,000 432,000 432,000