A. Calculate the payback period for this investment. What is your opinion of this investment?

B. Calculate the accounting ROR on this investment. Show your work for full credit.

C.

Using a financial calculator or Excel, calculate the NPV of this investment if the cost of capital is 8% . Show the data you use but you don't have to give me the Excel spreadsheet.

Should the company invest in this project? Can you support this answer with any of your previous calculations and which one?

Princeton Manufacturing Company is considering the following investment proposal: Initial investment: Depreciable assets (straight- $80,000 line) Operations (per year for 4 years) Cash receipts $40,000 Cash expenditures 22,000 Salvage value of equipment $4,000