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2) (Ignore income taxes in this problem) Chow Company has the following data available for an investment Initial investment $142,500 Annual savings $30,000 Salvage value

2) (Ignore income taxes in this problem) Chow Company has the following data available for an investment
Initial investment $142,500
Annual savings $30,000
Salvage value zero
Life of investment 8 years
Required rate of return 10%
Questions below
a) What is the payback period for the investment?
b) Compute the net present value and show all calculations.
c) Is this a good investment for the firm?
d) The internal rate of return is closest to:

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