Option 1: The asset cost is $330,000. The asset is expected to have an 11-year useful life with no salvage value. Straight-line depreciation is used. The net cash inflow is expected to be $55,000 each year for 11 years. The company uses a 12% discount rate in evaluating capital investments. A significant portion of this asset is made from recycled material. When disposed of, certain parts of the asset can be recycled. The delivery time for this asset is 8 weeks.

REQUIRED You may use Excels built-in functions for NPV and IRR. Compute the following for the above-referenced investment options: 1.Payback period/method (assume cash inflows occur evenly throughout the year) 2.Unadjusted rate of return (or simple rate of return) 3.NPV (assume that cash inflows occur at year-end) 4.Internal rate of return (IRR) 5. Present Value Index