Basic Concepts
Roberts Company is considering an investment in equipment thatis capable of producing more efficiently than the currenttechnology. The outlay required is $2,293,200. The equipment isexpected to last five years and will have no salvage value. Theexpected cash flows associated with the project are as follows:
| Year | Cash Revenues | Cash Expenses |
| 1 | $2,981,160 | $2,293,200 |
| 2 | 2,981,160 | 2,293,200 |
| 3 | 2,981,160 | 2,293,200 |
| 4 | 2,981,160 | 2,293,200 |
| 5 | 2,981,160 | 2,293,200 |
The present value tables provided in Exhibit 19B.1 and Exhibit19B.2 must be used to solve the following problems.
Required:
1. Compute the project’s payback period. Ifrequired, round your answer to two decimal places.
years
2. Compute the project’s accounting rate ofreturn. Enter your answer as a whole percentage value (for example,16% should be entered as "16" in the answer box).
%
3. Compute the project’s net present value,assuming a required rate of return of 10 percent. When required,round your answer to the nearest dollar.
$
4. Compute the project’s internal rate ofreturn. Enter your answers as whole percentage values (for example,16% should be entered as "16" in the answer box).
Between  % and  %
