The following data are given for Alright Aluminum Company: Initial cost of p

The following data are given for Alright Aluminum Company:

Initial cost of proposed equipment

$75000

Estimated useful life

7 years

Estimated annual savings in cash operating expenses

$18000

Predicted residual value at the end of the useful life

$ 3000

Cost of capital

12%

Compute the following:

(a) Payback period

(b) Present value of estimated annual savings

(c) Present value of estimated residual value

(d) Total present value of estimated cash inflows

(e) Net present value (NPV)

(f) Internal rate of return (IRR)