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 associated with the system are as follows:

A. Calculate the payback period for the system.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.