Need help with homework please! I was absent the day he went over the material, and I'm not sure what's going on.

TAKE HOME QUIZ #8 HONORS ACCT2332 Spring 2016 Name:________________________________ Signature:______________________________ Instructions: Only 4-function calculators and pencils/erasers can be used to take this test. All phones, pagers and other communication devices must be turned off and put away. Clearly mark your answers on your test. SHOW ALL WORK to receive credit. Guesses on problems that show no work will be given a zero. Extra paper is available if you need any. Both this exam and any extra sheets given out must be turned in. There are 4 questions, each with a value of 25% for a total of 100%. Note: ALL WORK must be shown on the problems to receive full or partial credit - any correct answers without \"documentation\" (filled out formulas, etc.) will receive zero (0%) credit. Signing this page indicates that you have not cheated and will not cheat in any way. Good luck! ANSWERS: Question #1 NPV: ______________ Question #2 PB: ________________ Question #3 IRR: ______________ Question #4 ARR: ________________ TAKE HOME QUIZ #8 HONORS ACCT2332 Spring 2016 Facts: Lifetime Equipment Company buys a piece of equipment for $36,442 that will last for 7 years. The equipment will generate cash flows of $7,000 per year and will have no salvage value at the end of its life. Ignore taxes unless told to include them. 1. What is the net present value using a 12% cost of capital? 2. What is the payback period? 3. What is the internal rate of return? 4. What is the accounting rate of return on the investment