NPV, PAYBACK PERIOD, STRAIGHT LINE, ALL WITH TAXES. YOU CANNOT USE EXCEL OR A FINANCIAL CALCULATOR. CAN ONLY BE DONE BY HAND. SHOW WORK PLEASE!!!

eBook Print Question 2 Answer saved Marked out of 3.00 Flag question Payback Period and NPV: Taxes and Straight-Line Depreciation Assume that United Technologies Corporation is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 12,000 design hours per year; an operating cost savings of $65 per hour. The annual cash expenditures of operating the CAD system are estimated to be $600,000. The CAD system requires an initial investment of $200,000. The estimated life of this system is five years with no salvage value. The tax rate is 21%, and United Technologies uses straight-line depreciation for tax purposes. United Technologies has a cost of capital of 14%. (a) Compute the annual after-tax cash flows related to the CAD project. $0 (b) Compute each of the following for the project: 1. Payback period. Round your answer to 2 decimal places, 0 years 2. Net present value. (Round answer to the nearest whole number.) >