Based on the following information, calculate and show work for net present value (NPV), internal rate of return (IRR), and payback for the investment opportunity:

• EEC expects to save $500,000 per year for the next 10 years by purchasing the supplier.
• EEC's cost of capital is 14%.
• EEC believes it can purchase the supplier for $2 million.
• Would your answer be the same if EEC did not save $500,000 per year as anticipated? What would be the least amount of savings that would make this investment attractive to EEC?