You have been working as the general manager in the development department for GC Co. and your department has been developing the Luggnuts with better parts in this year. For this issue, it has been discussed to introduce new type of part picker machines in production for the better luggnuts. Through the screening process, two models are selected and the following is associated information on two luggnut picker machines being considered for use. Capital is introduced by the department of GCr by the department of luggnut.

Your job is to choose the best machine and to report your decision to the top management. Your choice on machine will be based on the tools for capital budgeting that we learned in the Financial Management class.

WACC (Required rate of return) is 10%.

YEAR CASH FLOW: Capital Cash Flow: GC

NPV for GC is _______ . Round your answer to the nearest cents.

IRR for Capital is ________ . Round your answer to TWO decimals in %

Payback period for Capital is __________ . Round your answer to TWO decimals.

Between GC and Capital, what will you choose based on NPV? ___________

0 - $2,870 - $4,018 1 $1,513 $378 2 $1,452 $951 3 $870 $2,588 4 $310 $2,952 5 $350 $589