flow of $$7,500$ per year for each year of its $15$ year life and will have a salvage value of $$4,000$ at the end of its life. Springfield's cost of capital is $10\%.$ Table $6-4$ and Table $6-5.$

Required:

a$.$ Calculate the net present value of the proposed investment. Ignore income taxes.

b$.$ Calculate the present value ratio of the investment.

c$.$ What will the internal rate of return on this investment be relative to the cost of capital?

d$.$ Calculate the payback period of the investment.

Complete this question by entering your answers in the tabs below.

Req A and $B$

a$.$ Calculate the net present value of the proposed investment. Ignore income taxes.

Note: Round the PV factors to $4$ decimal places. Ignore income taxes, and round all answers to the nearest whole dollar.

Negative amount should be indicated by a minus sign.

b$.$ Calculate the present value ratio of the investment.

Note: Round your present value ratio answerfto $3$ decimal places.

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a$.$ Net present value

b$.$ Present value ratio