The Multicash Corporation is considering an investment in new equipment costing $500,000. The equipment will be depreciated on a straight-line basis over 5 years, and it will have a zero salvage value at the end of that period. The equipment will produce annual cash operating revenue of $140,000 for 5 years. Multicash has a required rate of return for this project of 10 percent. There are no taxes.

Calculate

a) Payback

b) NPV

c) Discounted payback