PepsiCo Inc. provided the following details for a cost-benefit analysis:

• Cost of New Equipment: $500,000
• Expected Annual Savings: $120,000
• Equipment Life: 6 years
• Salvage Value: $50,000
• Discount Rate: 10%

Requirements:

1. Calculate the Net Present Value (NPV) of the investment.
2. Determine the Payback Period.
3. Compute the Accounting Rate of Return (ARR).
4. Analyze the feasibility of the investment.
5. Discuss the impact of salvage value on the NPV calculation.