Question II$.(20$ min, $5$ points$)$

Part A$.$ A manufacturing company has requested that $$400,000$ be spent on software and hardware to improve the efficiency of environmental control systems for the manufacturing process. This is expected to save $$100,000$ per year for years in energy costs and $$300,000$ at the end of $3$ years in equipment refurbishment costs.

Find the internal rate of return?

Part B

Find the External rate of return $($ERoR$)$ using MIRR for the following cash flow assuming $i_i=10\%$ and $i_b=9\%$

Find the External rate of return $($ERoR$)$ using ROIC for the following cash flow assuming $i_i=10\%$

$\backslash$table$[[$Year$,0,1,2,3,4,5],[\backslash$table$[[$Net cash$],[$flow$]],18,000,-10,000,14,000,-16,000,-14,000,3,000]]$

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