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Northern Specialties just purchased inventory-management computer software at a cost of $1,241,950

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Northern Specialties just purchased inventory-management computer

software at a cost of $1,241,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $146,340, $263,240, $296,600, $526,250, $720,320, and $565,740. What is the payback period on this investment? (Round answer to 2 decimal places,e.g. 15.25.)

Capitol Corp. management is expecting a project to generate after-tax

income of $76,300 in each of the next three years. The average book value of the project's equipment over that period will be $194,140. If the firm's investment decision on any project is based on an ARR of 37.5 percent (Round answer to 1 decimal places, e.g. 5.2%.)


What is the project's accounting rate of return?

Champlain Corp. management is investigating two computer systems.

The Alpha 8300 costs $2,677,625 and will generate cost savings of $1,175,125 in each of the next five years. The Beta 2100 system costs $3,058,500 and will produce cost savings of $857,750 in the first three years and then $2 million for the next two years. If the company's discount rate for similar projects is 14 percent:


What is the NPV for the two systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round answers to 0 decimal places, e.g. 5,275.)