(5-8.)

Charlie Chaplain Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 14%. The project would provide net operating income in each of five years as follows:

Sales - $ 2,735,000

Variable expenses - 1,000,000

Contribution margin - 1,735,000

Fixed expenses:

Advertising, salaries, and

other fixed out-of-pocket costs -$ 735,000

Depreciation- 595,000

Total fixed expenses - 1,330,000

Net operating income - $ 405,000

PLEASE HELP AND ANSWER- THANK YOU!

1.)What is the project profitability index for this project? (Round your answer to the nearest whole percent.)

2.)What is the projects internal rate of return to the nearest whole percent?

3.)What is the projects payback period?

4.)What is the projects simple rate of return for each of the five years?