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Ether Inc. is considering an option to buy injection molding machinery and has gathered the following information regarding this investment: The initial cost is

 

Ether Inc. is considering an option to buy injection molding machinery and has gathered the following information regarding this investment: The initial cost is estimated to be $180,000 and the machinery is expected to have a useful life of 5 years. Ether Inc.requires a minimum rate of return of 8%, and has calculated the following data pertaining to the purchase and operation of this machinery: Estimated Annual Estimated Annual Year Depreciation Cash Inflows Cash Outflows 1 $ 40,000 $8,000 $28,000 $50,000 $18,000 $28,000 $75,000 $22,000 $28,000 $105,000 $35,000 $28,000 5 $110,000 $50,000 $28,000 Determine Ether Inc.'s payback period, accounting rate of return, and NPV for this investment? 2. 3. 4.

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