The Logan Publishing Corporation Is Contemplating the Acquisition of a State

The Logan Publishing Corporation is contemplating the acquisition of a state of the art printing press.The following information is relevant:
The cost of the printing press is $\$ 180,000$
The anticipated revenue from the printing press is $\$ 120,000$ per year. The useful life of the car washis 12 years.
Anmul operating costs are expected to be:

$\begin{array}{ll}\text { Salaries } &\$ 40,000 \\\text {Utilities } & 10,000 \\\text { Power usage } &4,600\\\text { Supplies } & 6,400\\\text { Repars/maintenance} &12,000\\\end{array}$

The firm uses straight-line depreciation
The salvage value for the car wash is zero.
The company's cutdf points are as follows:
\begin{array}{ll}\text { Payback } &4years \\\text {Accounting rate of return } & 16 \% \\\\text { Internal rate of retune } &16\%\\\\end{array}
Ignore income taxes.
Required:
a. $\text { Compute the annual cash inflow }$
b. $\text { Compute the net present value }$
c. $\text { Compute internal rate of retun }$
d. $\text { Compute the payback period }$
e. $\text { Compute the profitability index }$
f. $\text { Should the printing press be purchased. }$