You are contemplating the purchase of a new $1,840,000 computer-based dairy cow feeding system. The system will be depreciated straight-line over its ten-year life and have no value at the end of its life. You will earn $250,000 before taxes in the first year from additional milk production and expect an annual growth rate of 4%. Your tax rate is 25%, equity cost 10%, and debt cost 7%. Currently, your farms debt to asset ratio is 0.25 and you would like to keep the same financial ratio.

a. Compute the following for this project using after-tax cash flows: (1) payback period, (2) NPV, and (3) internal rate of return. Please also list cash flows for each year.