1. The following data are given for the Allright Corporation:
Initial cost of proposed equipment $75,000
Estimated useful life 7 years
Estimated annual savings in cash operating expenses $18,000
Predicted residual value at the end of useful life $3,000
Cost of Capital 12%
Compute the: (a) payback period; (b) present value of estimated annual savings; (c) present value of estimated residual value; (c) present value of estimated cash inflows; € net present value (NPV); and (f) internal rate of return (IRR)