Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $338,640 and to have a six-year life and no salvage value. The equipment is expected to generate income of $14,039 and net cash flow of $73,253 in each year of its six-year life. Santana requires an 9% return on all investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.)
Required:
1-a. Compute the payback period for this equipment.
1-b. Compute the net present value for this equipment.
1-c. Compute internal rate of return for this equipment.
2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment
