1.The following data are given for the Allright Corporation:

Initial cost of proposed equipment$75,000

Estimated useful life7 years

Estimated annual savings in cash operating expenses$18,000

Predicted residual value at the end of useful life$3,000

Cost of Capital12%

Compute the: (a) payback period; (b) present value of estimated annual savings; (c) present value of estimated residual value; (c) present value of estimated cash inflows; net present value (NPV); and (f) internal rate of return (IRR)