Company VWX is analyzing a project with the following information:

• Initial cost: $250,000
• Cash flows: $70,000 annually for 5 years
• Salvage value: $20,000

Requirements:

1. Compute the payback period.
2. Calculate the NPV at a discount rate of 11%.
3. Determine the IRR.
4. Discuss the impact of salvage value on the NPV and IRR calculations.