Nancy just graduated from college. Since she is starting her own business, it's time to upgrade from her clunker to a reliable vehicle.

Nancy has the option to purchase a new car for her business at a cost of $$19,440($life of $7$ years with no salvage value$),$ estimating that

it would help her bring in additional annual net operating cash flows of $$9,000$ over the life of the car.

Determine the simple payback period and the IRR for this investment. Nancy expects her business income to be subject to a $30\%$ tax

rate. $($Round simple payback period to $3$ decimal places, e$.$g$.15\mathrm{.}256$ and IRR to $2$ decimal places, e$.$g$.15\mathrm{.}25\%.$ Round intermediate

calculations to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Simple payback period

years

IRR

$\%$

Simple payback period of $2\mathrm{.}16$ years is correct, but IRR at $17\mathrm{.}97\%$ is not correct.