ADC's discount rate (interest rate) for evaluating capital expenditures: 18% $ Vendor - Thunder Drums: Thunder Drums offers a financing plan. Annual increase in sales revenue (cash-in) due to manufacturing higher quality drums Down Payment (due immediately) Annual payments to be paid at the end of each year for 4 years. Annual shell savings by manufacturing rather than purchasing shells Salvage value at end of equipment's life Equipment's life expectancy (years) 75,000 180,000 90,000 35.000 10,000 $ Vendor - Drum Solutions: Drum Solutions produces high-quality equipment. Cash price Annual increase in sales revenue due to manufacturing higher quality drums Annual shell savings by manufacturing rather than purchasing shells Salvage value at end of equipment's life Equipment's life expectancy (years) 460,000 70,000 40,000 5,000 9a Calculate the following for each vendor: 1) Cash Payback 2) Net Present Value 3) Profitability Index 4) Internal Rate of Return