1) Surrey Inc. is considering the purchase of new equipment. Details of the investment follow: (40 marks) Net initial investment $1,025,000 Estimated Useful life 8 years Estimated terminal disposal price $120,000 Estimated annual cash sales $520,000 Estimated annual cash operating expenses $295,000 Required rate of return 12% Depreciation method: straight line. Required: a. Calculate the payback period. b. Calculate the accrual accounting rate of return based on the initial