A firm is evaluating the purchase of a new equipment with the following financial data:

• Cost of equipment: $800,000
• Expected useful life: 8 years
• Salvage value at the end of 8 years: $50,000
• Annual savings generated by the equipment: $140,000
• Tax rate: 40%
• Depreciation method: Straight-line
• Discount rates and corresponding PV factors:
  • 9%: 6.418
  • 11%: 5.889
  • 13%: 5.420
  • 15%: 5.016
  • 17%: 4.660

Requirements:

1. Calculate the net present value (NPV) at a discount rate of 11%.
2. Determine the internal rate of return (IRR).
3. Compute the payback period.
4. Analyze the impact on NPV if the salvage value increases by 10%.
5. Calculate the benefit-cost ratio (BCR).