Rent-to-Own Equipment Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Rent-to-Own's required rate of return is 8%.

a-)Calculate the payback period of this project.

b-)Calculate the net present value of this project.

c-)Calculate the profitability index of this project.

d-)Use Excel by following the formula as given in Chapter 9 for calculating the internal rate of return (IRR) and calculate it for this project.

e-)Using your answers above, is this a financially-wise project to undertake? Why?