LMN Inc. is planning to replace old equipment with a new one costing $650,000. The new equipment will have a life of 5 years and is expected to bring annual savings of $150,000. The company's required rate of return is 10%. Present value factors are:

Year	PV Factor at 10%
1	0.909
2	0.826
3	0.751
4	0.683
5	0.621

Requirements:

1. Calculate the total present value of the savings.
2. Determine the NPV.
3. Compute the payback period.
4. Find the IRR.
5. Evaluate the project's financial justification.