Project A

Required investment $-540,000 Annual cost savings $108,000

Project life 8 years

Salvage value $86,400

Payback period 5 years

can you find the NPV at 12%?

can you find the profitability index at 12%?

can you find the internal rate of return?

Assuming the cost of capital is 12%, complete the return. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amounts should be indic minus sign. Round your "NPV" answers to the nearest whole dollar amounts. Round your "PI" and "IRR" answers to 2 decimal place