E5: Calculate the NPV, ROI, and Payback for the following problem (15 pts):

Discount Rate: 7%

Year: 1 2 3 4

Costs: 300,000 40,000 40,000 40,000

Discount factor: 0.93 0.87 0.82 0.76

Discounted cost: 279,000 34,800 32,800 30,400

Benefits: 0 120,000 120,000 120,000

Discount factor: 0.93 0.87 0.82 0.76

Discounted benefits: 0 104,400 98,400 91,200

Cumulative benefits; 279,000 313,800 346,600 377,000

Cumulative costs 0 104,400 202,800 294,000

NPV=

ROI=

PB=