QUESTION 1 (9 marks) 10 years A business is considering investing in a new piece of equipment. Information about the Equipment: Life of equipment: Cost of equipment: $600,000 Equipment salvage value (in 10 years): $ 10,000 The equipment will require major repairs in year 8 at a cost of $40,000. Cost of capital of 10%. $130,000 Information about the annual financial effect of the new equipment over the ten years: Annual Income (all sales are cash sales): Expenses: Annual expenses (paid by cash): $ 30,000 Other annual expenses (depreciation): $ 59,000 Annual increase in net income: 89,000 $ 41,000 REQUIRED: A. Calculate the payback period B. Calculate net present value C. Identify and briefly discuss other factors to be considered