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Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is

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Basic Concepts Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,133,333. The equipment is expected to last five years and will have no salvage value, The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses 1 $2,940,000 $2,300,000 2 2,940,000 2,300,000 2,940,000 2,300,000 4 2,940,000 2,300,000 2,940,000 2,300,000 The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: 1. Compute the project's payback period.. If required, round your answer to two decimal places. years 2. Compute the project's accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16 in the answer box). 3. Compute the project's net present value, assuming a required rate of return of 10 percent. When required, round your answer to the nearest dollar percentage values 4. Comoute the orolect s Internal rate of return. Enter vour answers as.whole vemosvgevaueme quupmene is pected t0 TaSt veInES a tzneanN Cash Expenses Cash Revenues Year $2,940,000 $2,300,000 1 2,300,000 2,940,000 2,940,000 2,300,000 3 2,300,000 2,940,000 4 2,300,000 2,940,000 The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: 1. Compute the project's payback period. If required, round your answer to two decimal places. years 2. Compute the project's accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box). 3. Compute the project's net present value, assuming a required rate of return of 10 percent. When required, round your answer to the nearest dollar 4. Compute the project's Intemal rate of return. Enter your answers as whole percentage values. 96 and Between

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