a. An asset (investment) costs $289,000, has a twelve-year useful life, and generates net annual cash inflows of $94,000 per year for the first 2 years, and $24,500 per year for the following 10 years. The investment has no residual value. Cash expenses related to this investment are expected to be around $12,000 per year. Calculate the cash payback period for this investment.

b. An asset (investment) costs $390,000, has a twelve-year useful life with no residual value. The investment generates sales revenue $58,000 per year. Cash expenses related to this investment are expected to be around $25,000 per year, and straight-line depreciation expense for the asset is $16,000 per year. Calculate the average rate of return for this investment.

c. Jamie inc. is considering a capital investment (equipment) costing $75,000 with a 6-year useful life, and equal annual net cash flows. The equipment has a net present value, $4,453, calculated at 10%. Find the approximate internal rate of return for this investment.

d. D'melio, Inc. recently invested in an asset with a 3-year useful life. The net present value was $5,500 and net annual cash flows are estimated to be $5,900 for years 1 through 3. Calculate the original investment in the asset (cost), assuming a 9% minimum desired rate of return (round to nearest $1).