Zoomz Video wants to introduce a new product line but must buy the new machine to produce

the product at a cost of $$100,000.$ The machine will be depreciated straight line over its

$5$ year life to a $$0$ salvage value. The machine will be sold in year $5$ for $$500$ in scrap metal

The new machine will produce $1,000$ units each year over its $5$ year life at a sale price of

$$100\mathrm{.}00.$ Variable Costs are $25\%$ of sales and fixed overhead is $$35,000$ per year.

The company is in the $25\%$ corporate tax bracket and has a discount rate of $10\%.$

If the company were to reinvest cash flows from the project each year, it would invest in

an account that invests in Treasuries that yield $4\%.$

Calculate the following and show ALL WORK

Payback

Discounted Payback Period

Net Present Value

Profitability Index

IRR

MIRR