The Toyundai Motor Company has the opportunity to invest in new production line equipment, which would have a working lifetime of 10 years. The new equipment would generate the following increases in Toyundai's net cash flows. In the first year of usage, the new plant would decrease costs by $200,000. For the following six years the cost saving would fall at a rate of 5 per cent per annum. In the remaining years of the equipment's lifetime, the annual cost saving would be $140,000. Assuming that the cost of the equipment is $1,000,000 and that Toyundai's cost of capital is 10%, and payback cutoff 6 years 1. Compute the following a. NPV b. IRR c. payback period d. discounted payback period 2. According to each of the project evaluation techniques used above, should Toyundai take on the investment? And why