Ann, your colleague from Accounting, recommends using the base assumptions above: 5-year project life, flat annual savings, and 10% discount rate. Ann does not feel the equipment will have any terminal value due to advancements in technology. 2. Steve from Sales is convinced that this capability would add a new revenue stream that could significantly offset operating expenses. He recommends savings that grow each year: 5-year project life, 10% discount rate, and a 10% compounded annual savings growth in years 2 through 5. In other words, instead of assuming savings stay flat, assume that they will grow by 10% in year 2, and then grow another 10% over year 2 in year 3, and so on.

Using the data presented above, for this profit and supply chain improvement project, calculate each of the following

Nominal Payback, discounted payback, net present value, internal rate of return