Advanced Products is considering the purchase of a computer-aided manufacturing system that requires an initial investment of $1,750,000 and is expected to provide average annual cash benefits and savings of $250,000 each year for the next 10 years. Their current cost of capital is 10%. Following are selected factors from tables for 10 years at 10%:

FV of $1	FVOA	PV of $1	PVOA
2.59374	15.93742	0.38554	6.14457

Required: What is the present value of the cash outflows/Investment

Required: Compute the present value of the cash inflows/savings

Required: Compute the net present value of the investment

Required: Compute the payback period of the investment