Lotus Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this years capital budget. The projects are independent. The firms cost of capital is 12%. The after tax cash flows, including depreciation, for the truck and the pulley are as follows

year 0 1 2 3 4 5 6 7

Truck -50000 10000 10000 10000 10000 10000 10000 10000

Pulley -70000 15000 15000 15000 15000 15000 15000 15000

(Keep your answer to only two decimals)

a. What is the payback period for the truck ? (example of answer format: 15.42 years, or 15 .42)

b. What is the payback period for the pulley ? (example of answer format: 15.42 years or 15.42)

c. What is NPV for the truck ? (example of answer format: $1,000.00 or -$1,000.00)

d. What is NPV for the pulley ? (example of answer format: $1,000.00 or -$1,000.00 )