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IBU Inc. purchased equipment for $200,000 that is expected to generate cash inflows from operations of $60,000 in each of the next 5 years. The

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IBU Inc. purchased equipment for $200,000 that is expected to generate cash inflows from operations of $60,000 in each of the next 5 years. The machine will be depreciated on a straight-line basis with no salvage value Assume the following Present Value figures. for a Cost of Cap Hd of ,a%, Present Value Present Value of an Period of$l at 12% Annuity of $1 at 12% 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 120 0.8929 0.7972 0.7118 0.6355 4 5 6 0.5066 0.4523 0.4039 8 = 3.3 1A. What is the Payback period for the investment by IBU Inc.? pceked h 2.0 years 3.3 years C. 4.0 years D. 4.7 years Cash ittauls frn 2B. What would be the Net Present Value of the investment by IBU Inc.? C. $33,444 D. $ 145,136 A. $12,100 $16,288 3B. From a financial analysis viewpoint, is this an acceptable investment?...... Why

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