)Nagle's Machinery is spending $97,500 to update its equipment. This is necessary if the firm wishes to be competitive in the marketplace and provide a wide array of product models. The company

estimates that these updates will improve their cash inflows by $18,500 a year for 5 years. What is the payback period?

2)An investment has an initial cost of $400,000.It is a four-year project with expected cash flows as shown below.If you require a 15.5% IRR on the project, should you proceed? Why or why not?

Year12 3 4

Net income$120,000$124,600$138,700$130,000

3) An investment has an initial cost of $200,000 and a life of four years. It is expected to generate net cash flows as shown below.Should this project be accepted based on a discount rate of 8%? Why or why not?

Year1234

Cash Flow$28,000$70,600$88,700$92,400