Siegmeyer Corp. is considering a new inventory system, Project A, that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Siegmeyer's required rate of return is 8%
- What is the payback period for this project?
- What is the net present value of this project?
- What is the internal rate of return?
- Based on the NPV should they accept or reject?
- Based on the Internal rate of return should the accept or reject?