Thesenior VP in charge of your area asked you to recommend the purchase of a new,expensive asset for the firm.  You
assemble a team tohelp you. To encourage capital investments, the government hasexempted taxes on profits from new investments. This legislation is to be ineffect for the foreseeable
future. 
 
The companys averagereported net income is $850,000.

The asset cost is$330,000. 
The asset is expectedto have a 11-year useful life with no salvage value.
Straight-linedepreciation is used.
The net cash inflow isexpected to be $55,000 each year for 11 years. 
The company uses a 12%discount rate in evaluating capital investments.
A significant portionof this asset is made from recycled material. 
When disposed of,certain parts of the asset can be recycled. 
The delivery time forthis asset is 8 weeks.

Computethe following for the above-referenced investment
options:  (please show the computations used) (please show work)

1.Paybackperiod/method (assume cash inflows occur evenly throughout the year)
2.Unadjusted rate ofreturn (or simple rate of return) 
3.NPV (assume thatcash inflows occur at year-end)
4.Internal rate ofreturn (IRR)
5. Present Value Index

Please add your thoughts based off these calculations 

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