A firm is considering whether or not to purchase an asset to expand its operations. Below is a table of the cash flows associated with the asset over its useful life. The firm has a required rate of return of 16.50%. The asset has no salvage value.

1. What is the payback period? Round to the nearest 0.01.

2. What is the net present value (NPV)? Round the nearest $0.01.

3. What is the internal rate of return (IRR)? Round to the nearest 0.01%.

Note: For problems solved in the financial calculator, please list your inputs. Otherwise, show all your work (each step) using the formula, not Excel.

Year 0 1 2 3 4 5 Cash Flow -$10,750 $3,450 $1,800 $1,600 $1,200 $5,275