1. Given the following capital project data
- Cost of automation system (invoice):$730,000
- Transportation and installation:$140,000
- Training:$100,000
- Firm's WACC:9%
- Firm's tax rate:35%
- Depreciation 5 years, straight line
- Life of project:3 years
- Salvage value:$385,000
- Annual cost savings (net):$105,000
- Increased annual sales (net):$200,000
Calculate (1) the payback, (2) the discounted payback, (3) the NPV, (4) the IRR, (5) the MIRR, and (6) your recommendation on the project.