Crescent Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. If the firm uses an 18 percent discount rate for projects like this.

0	-$3,534,400
1	$933,710
2	$877,200
3	$1,056,100
4	$1,341,460
5	$1,539,500

What is the NPV of this project?

2.Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $125,000 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?

3. Northern Specialties just purchased inventory-management computer software at a cost of $1,233,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $159,340, $219,240, $290,600, $487,250, $684,320, and $463,740. What is the payback period on this investment?

4. Capitol Corp. management is expecting a project to generate after-tax income of $77,270 in each of the next three years. The average book value of the projects equipment over that period will be $200,120. If the firms investment decision on any project is based on an ARR of 37.5 percent.

5. Hathaway, Inc., a resort management company, is refurbishing one of its hotels at a cost of $7,622,767. Management expects that this will lead to additional cash flows of $1,760,000 for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Hathaway go ahead with this project?