Eta Innovations is planning to invest in new manufacturing equipment. The initial investment is $700,000, and the expected life of the equipment is 8 years with no salvage value. The expected annual revenue is $250,000, and the expected annual operating costs are $120,000. The company’s cost of capital is 9%.

Requirement: Calculate the NPV, payback period, and IRR for the investment. Should Eta Innovations proceed with the investment? Provide a detailed analysis based on your calculations.

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