1-Your firm uses the discounted payback method. Calculate the discounted payback for the following investment. A machine costs $220,000. After-tax cash inflows are expected to be $120,000 per year for the next five years. Assume a discount rate of 10%. (Enter your answer accurate to two (2) decimal places).

2-If the NPV of a conventional project is $1,500 and the required rate of return is 12%, what (if anything) can we determine about the IRR?

a-IRR =12%

b-IRR < 12%

c-IRR > 12%

d-Cannot determine whether the IRR < 12%, IRR = 12%, or if IRR > 12%