Peters Company wants to buy a new machine costing $840,000. The equipment will last five years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

Year	Cash Revenues		Cash Expenses
1	$1,150,000		$750,000
2	1,150,000		750,000
3	1,150,000		750,000
4	1,150,000		750,000
5	1,150,000		750,000

Required:

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

2. Compute the equipment's ARR. Round your answer to one decimal place.

3. Compute the investment's NPV, assuming a required rate of return of 9 percent. Round present value calculations and your final answer to the nearest dollar. $

4. Compute the investment's IRR.