The management at Luke Products Inc. is looking at the financials for an innovative new diaper-changing station. The expected life cycle for the product is four years. The initial projected product design costs are $500,000.

Management typically uses a discount rate of 10 percent for all new product financials.

Year Projected cash in-flows

1. 130,000
2. 250,000
3. 300,000
4. 100,000

Calculate the projected NPV.

2. Calculate the payback time.

3. Calculate the IRR.4.

The product design costs are $250,000. Use a discount rate of 9 percent for the projected cash in-flows. Assume a five-year life span. Calculate the projected NPV, the payback time, and the IRR"