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SHOW ALL WORK. Ignore income taxes in all problems. DO NOT USE EXCEL Chow Company has gathered the following data on a proposed investment project:

SHOW ALL WORK. Ignore income taxes in all problems. DO NOT USE EXCEL

Chow Company has gathered the following data on a proposed investment project:

Investment required in equipment...$142,500

Annual cash inflows........$30,000

Salvage value.....$0

Life of the investment......8 years

Required rate of return....10%

Required:

a. What is the payback period for the investment?

b. What is the simple rate of return on the investment?

c. What is the net present value on this investment?

d. What is the internal rate of return on the investment?

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