The following data are given for Al Good Silver Company:

Initial cost of proposed equipment $75,000

Estimated useful life 7 years

Estimated annual savings in cash operating expenses $18,000

Predicted residual value at the end of the useful life $3,000

Cost of capital 10%

Required:

Calculate the following:

(a) Payback period

(b) Present value of estimated annual savings

(c) Present value of estimated residual value

(d) Total present value of estimated cash inflows

(e) Net present value (NPV)