Paramount Company is considering purchasing new equipment costing $700,000. Company's management has estimated that the equipment will generate cash flows as follows Year 1 $200,000 200,000 250,000 250,000 150,000 99 IN The company's required rate of return is 10% Using the factors in the table below, calculate the present value of the cash inflows. Present value of $1: 7% 8% 10% 0.943 0.935 0.926 0.917 0.909 0.89 0.87 0.8570.842 0.826 084 0.816 0.794 0.792 0.763 0.708 0.718 0.747 0.681 0.69 0.772 0.751 0.738 0621 0 $765,000 $768,921 $798,650 5780,000 Newman Automobiles Manufacturing is considering two alternative investment proposals with the following de Proposal Proposal Y Investment $10,000,000 $500,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,000,000 $95,000 Residual value $50,000 $20,000 Depreciation method Straight-line Straight-line Required rate of return 12% 10% Calculate the payback period for Proposal 5 years 4 years 8 years 10 years