GC Hotel is considering investing in a new POS that will cost $151,000 and have no salvage value at the end of its 5-year life. It is estimated that the project will generate annual cash inflows of $40,000 each year. GC Hotel requires a 9% rate of return and uses the following compound interest table:

Present Value of an Annuity of 1

           Period          6%            8%             9%          10%          11%             12%            15%

              5             4.212        3.993         3.890         3.791        3.696          3.605          3.352

Required

What is the net present value of the investment? 

If the net income per year is $10,000, what is the unadjusted rate of return?

What is the internal rate of return on this investment?

Should GC Hotel invest in the POS?