7. Madison Company is evaluating a project requiring a capital expenditure of $400,000. The project has an estimated life of 8 years and no salvage value. The estimated net income and net cas follows: h flow from the project are as Net Income $21,000 21,000 21,000 21,000 21,000 21,000 21,000 21,000 $71,000 71,000 71,000 71,000 71,000 71,000 71,000 71,000 The company's minimum desired rate of return is 10%. Required: a. Calculate average (accounting) rate of return. b. Calculate payback period. c. Calculate net present value