1. Your company is considering buying equipment for $6,000,000 to save costs and thus increase after-tax net income by $1,980,000 each year for the next 14 years. If the equipment has a salvage value of $300,000, what is the
   1. Accounting Rate of Return?
   2. Payback Period?
2. Your company is considering making a $5,400,000 investment in a cost saving project to increase cash flows by $900,000 each year for the next 10 years. If the hurdle rate is 7%, what is the projects
   1. Net Present Value?
   2. Internal Rate of Return?
   3. Payback Period?