Triangle Corp is planning to buy a new computer for $750,000 with a useful life of six years. At the end of six years, the system will have no value. Over the six years the system will save them $250,000 each year for the first three years and $100,000 each year for the last three years.

a. What is the NPV of the project if Triangle Corp requires a return of 15%?

b. What is the IRR for this project?

c. At what required rate of return is the project’s NPV = 0?

d. How are NPV and IRR related?

e. At a required rate of return of 15%, is the project acceptable?