Basic Evaluation Methods. The following data are given for the Alright Aluminum Company: Initial cost of proposed equipment $                                       75,000 Estimated useful...

Basic Evaluation Methods. The following data are given for the Alright Aluminum Company:

Initial cost of proposed equipment $                                       75,000

Estimated useful life                                                                       7 years

Estimated annual savings in cash operating expenses     $18,000

Predicted residual value at the end of the useful life       $3,000

Cost of capita                                                                                     l 12%

Compute the: (a) payback period; (b) present value of estimated annual savings; (c) present value of estimated residual value; (d ) total present value of estimated cash inflows; (e) net present value (NPV); and ( f ) internal rate of return (IRR).