A firm has the ability to invest in a cost saving process that will save them $100,000 per year for the next 25 years. They normally earn 12 percent investment of this type. To accomplish this, they need to invest $609,710.
a. determine the Net Present Value (NVP) of this investment
b. determine the Benefit-Cost Ratio of this project
c. determine the Equivalent Annual Cost (EAC) of this project
d. determine the payback period for this investment
e. determine the Internal Rate of Return (IRR) for this project