Winona Miller, president of CLJ Products, is considering the purchase of a compu

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Winona Miller, president of CLJ Products, is considering the purchase of a computer-aided manufacturing system that requires an initial investment of $4,000,000 and is estimated to have a useful life of 10 years. CLJ Products' cost of capital is currently 12 percent. The annual after-tax cash benefits/savings associated with the system are as follows: A. Calculate the payback period for the system. (Round to two decimal places.) years Assume that the company has a policy of accepting only projects with a payback of five years or less. Should the system be purchased? B. Calculate the NPV and the IRR for the project. Use the minus sign to indicate a negative NPV, if required. NPV: (Round to nearest whole dollar.) $ IRR: (Round to two decimal places.) %

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