Bullock Prosthetics is planning to buy 3-D printing machinery costing $380,000. This machinerys expected useful life is 5 years. They require a minimum rate of return of 8%, and have calculated the following data pertaining to the purchase and operation of this machinery:

Year	Estimated Annual Cash Inflows	Estimated Annual Cash Outflows	Depreciation
1	$ 90,000	$15,000	$60,000
2	$150,000	$45,000	$60,000
3	$230,000	$95,000	$60,000
4	$270,000	$110,000	$60,000
5	$300,000	$125,000	$60,000

Determine Terra's payback period, accounting rate of return, and NPV for this investment?

Using these formulas with step by step instructions:

Accounting Rate of Return: (Average incremental revenue)-(Average incremental expenses (including depreciation and taxes)) / initial investment

Payback Period: Initial Investment / Annual after-tax cash inflow