You have the following information:

Investment = 500 000$

Hurdle rate = RRR = Required Rate of Return= 4%

Cash Flows you expect from this investment are 100 000 $ over 6 years

Annual depreciation for this new equipment is = 50 000 $

Calculate and interpret the ARR (Accounting Rate of Return)

Calculate and interpret the payback period

Calculate and interpret the NPV (Net Present Value)

Knowing that the IRR is 5,472%, (Internal Rate of Return), explain the final decision of the managers, would they accept or reject this investment?