calculate

1. Average payback period

2. Actual Payback Period

3. Net present value

4. benefit/cost ratio

5. is the internal rate of return

less than, higher than or equal to 7%?

Here is the scenario for the next six questions: Mary is contemplating purchasing a $60,000 piece of equipment for her company. The useful life is 5 years. The annuai profits for this piece of equipment are predicted to be $13,000;$12,000;$11,000;$9,000;$9,000 for years 1 - 5 respectively. The cost of capital is 7%