500–750 words On Your Mark is considering purchasing new manufacturing equipment that costs $1,300,000 and is expected to improve cash flows by the following values: •$500,000 in year 1 •$350,000 in year 2 •$475,000 in year 3 •$450,000 in year 4 •$300,000

500–750 words On Your Mark is considering purchasing new manufacturing equipment that costs $1,300,000 and is expected to improve cash flows by the following values: •$500,000 in year 1 •$350,000 in year 2 •$475,000 in year 3 •$450,000 in year 4 •$300,000 in year 5 Key financial metrics for this capital budgeting project have been calculated and provided by the finance department (see below). A 14% rate of return and a payback period of less than 5 years are required for the project. These key metrics use 6% as the weighted average cost of capital and must include the following: •Payback period •Net present value •Internal rate of return Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 ($1,300,000) 500,000 350,000 475,000 450,000 300,000 pv 438,596 269,314 320,611 266,436 155,811 NPV 150,768 IRR 19% payback (800,000) (450,000) 25,000 475,000 775,000 MIRR 17% In a memo to the CFO, discuss the metrics, and make a recommendation regarding whether the company should accept or reject the project. Please include 3 - 4 references in APA format. This assignment will pay $50.00 Thanks!</p><table border="0" cellspacing="0" cellpadding="2" id="RowTable"><tbody><tr align="left"><td><p>Instructors Comments: </p><p>In "discussing the metrics", here is what you should include in your paper:</p><p>1. The pros and cons (all of them) for each method</p><p>2. The decision criteria for each method </p><p>3. Whether you can accept or reject the project, and why (support with the figures provided)</p><p>Please follow this format for all three methods. For example, start with payback, discuss the decision criteria, the pros and cons, and whether you can accept the project under that method and why. Then, move on to NPV and do the same, followed by IRR.</