ABC Corporation is considering purchasing equipment that costs $300,000. The equipment is expected to generate net cash inflows of $70,000 for the first three years, $50,000 in the fourth year, and $60,000 in the fifth year. Calculate the internal rate of return (IRR) for the investment.

Requirements:

•Calculate the IRR.

•Determine the payback period.

•Find the total cash inflows over the investment period.

•Assess if the investment is worthwhile if the required rate of return is 10%.

________________________________________