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Calculate and report the economic justification measures, present worth, return on sales, return on investment, and payback, shown in Chapter 9 example 9.4 for the

Calculate and report the economic justification measures, present worth, return on sales, return on investment, and payback, shown in Chapter 9 example 9.4 for the investment cash flows shown below. The new method will cost $14,800 with no salvage planned. Use an interest rate of 10%. Note the payback measure asked in this question is calculated differently than the example 9.4 calculation. Year Sales Increase $ Production Cost $ 1 8,500 4,100 2 11,200 7,100 3 19,400 12,700 4 12,400 7,900 5 9,200 5,500 6 6,300 4,900 7 4,200 2,900 a. What is the net present value? Note that initial investment has to be subtracted to find the net. b. What is the return on investment? c. What is the return on sales? d. What is the payback, the year that the end of year cash flow turns positive including recovery of the original investment and stays positive thereafter?

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