Omega LLC is considering purchasing new equipment:

• Initial cost: $600,000
• Net annual benefits:
  • Year 1: $110,000
  • Year 2: $120,000
  • Year 3: $130,000
  • Year 4: $140,000
  • Year 5: $150,000

Requirements:

1. Calculate the NPV at a discount rate of 7%.
2. Determine the payback period.
3. Compute the IRR.
4. Evaluate the PI.