Audio Partners needs to invest in the next level of technology in order to be competitive. The company is exploring the purchase of a new piece of equipment that will cost $$1,500,000,$ at an expected discount rate of $8\%.$ The equipment is expected to return net cash inflows of $$250,000$ over the next $10$ years.

Based on the above information and using the provided Excel template, calculate the following items for this proposed equipment purchase:

Net Present Value

Internal Rate of Return

Payback Period

Would you recommend the company invest in this equipment? Why or why not?

Capital Budgeting Calculations

Complete the calculations for analyzing the proposed equipment purchase in the provided Excel workbook. Use Excel formulas within the cells to calculate all required calculated numbers.