Background:

Kinetic Corp is considering a new machine that will cost $750,000. The machine is expected to generate the following cash flows over its 5-year life:

•Year 1: $180,000

•Year 2: $160,000

•Year 3: $140,000

•Year 4: $120,000

•Year 5: $100,000

The required rate of return is 13%.

Requirements:

1.Calculate the NPV.

2.Calculate the IRR.

3.Determine the Payback Period.

4.Calculate the Discounted Payback Period.

5.Assess the impact on the company's return on investment (ROI).