2. A company is thinking of automating one of its production facilities. The equipment required will cost a total of $10 million and will last for ten years. Engineers have estimated the following benefits from savings in labor costs and reduced warranty claims through better quality control: Year Cost Savings ($000) 864 1,246 2,748 2,437 1,839 623 10 Using NPV and IRR calculations, should the company undertake this project is its cost of capital is 10%? what is the return indicated by the Payback method and would the project be accepted is the company accepts projects with payback of five years