Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return

Follow the format shown in Exhibit $12$B$\mathrm{.}1$ and Exhibit $12$B$\mathrm{.}2$ as you complete the requirements below.

Woodard Company wants to buy a numerically controlled $($NC$)$ machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $$460,800.$ The NC equipment will last $5$ years with no expected salvage value. The expected after$-$tax cash flows associated with the project follow:

Year Cash Revenues Cash Expenses

$1$ $$612,000$ $$432,000$

$2612,000432,000$

$3612,000432,000$

$4612,000432,000$

$5612,000432,000$

Required:

$1.$ Compute the payback period for the NC equipment. Round your answer to two decimal places.

fill in the blank $1$ of $1$

years

$2.$ Compute the NC equipment's ARR. Round the percentage to one decimal place. Assume straight$-$line depreciation.

fill in the blank $1$ of $1$

$\%$

$3.$ Compute the investment's NPV$,$ assuming a required rate of return of $10\%.$ Round present value calculations and your final answer to the nearest dollar.

fill in the blank $1$ of $1$$

$4.$ Compute the investment's IRR.