National Rodeo Association, a Not-For-Profit Organization, Is Considering Purchasing a New

National Rodeo Association, a not-for-profit organization, is considering purchasing a new enterprise software system for $90,000. This investment is projected to have an eight-year useful life, and a salvage value of $8,800. Its anticipated eight-year life is projected to save the organization approximately $18,000 each year in operating costs. In addition, the association needs an increase of $5,000 in net working capital (other than cash) in the first year, which will not be released until the end of eight years.
Required:
1. What is the payback period for this proposed investment? (Assume that the cash flows, other than salvage value, occur evenly throughout the year. Also, round your answer to 2 decimal places.)
2. If the Association has a required rate of return of 10 percent, what is the net present value (NPV) of this investment? Round your calculation results to whole numbers. (The PV annuity factor for 10%, 8 years is 5.335, while the PV $1 factor for 10%, 8 years is 0.467.)
3. What is the internal rate of return (to the nearest whole percent)? (Note: The following present value factors are taken from the present value tables in Appendix C of Chapter 12, for an 8-year period. This information is needed to answer the question.)