Avis Castillo, general manager of the Argentinean subsidiary of Innovation Inc., is considering the purchase of new industrial equipment to improve efficiency at its Cordoba plant. The equipment has an estimated useful life of eight years. The estimated cash flows for the equipment are shown in the table that follows, with no anticipated change in working capital. Innovation has a 16% required rate of return. Assume depreciation is calculated on a straight-line basis. Assume all cash flows occur at year-end except for initial investment amounts. (Click the icon to view the estimated cash flows for the equipment.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) Required Requirement 1. a. Calculate the NPV (net present value) of the new industrial equipment. (Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) b. Calculate the investment's payback period. (Round your answer to two decimal places.) The payback period is years. c. Calculate the investment's internal rate of return (IRR) using a trial-and-error approach and straight-line interpolation as necessary. (Round all interim calculations to three decimal places and the IRR to two decimal places, X.XX\%.) The IRR (internal rate of return) is %. Required 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return. 2. Compare and contrast the capital budgeting methods in requirement 1. 3. The controller of Innovation Inc. received Castillo's estimates but adjusted them to capture the added risk of doing the project in Argentina. Recalculate item 1 with a required rate of return of 20% and explain if the project will be approved by Innovation Inc. for its Argentinean subsidiary. Data table