8-year life expectancy and a $1,650,000 equipment investment. The project would come to an end after eight years, with the equipment having a salvage value of $100,000. The project would require $40,000 in additional working capital in the form of an increase in their bank's minimum balance requirement, which would be released at the end of the project.

- net income

Sales.............................................................................. .......................... $3,750,000

Less variable expenses..................................................... 2,520,000

Contribution margin........................................................ 1,230,,000

Less fixed expenses:800,000

Fixed out-of-pocket cash expenses..................... 5,000

Depreciation.................................................... 805,000

Net income..................................................................... $ 425,000

The companys required rate of return is 10%.

Required:

1. net present value.

2. internal rate of return,

3. payback period.

4. simple rate of return.

5. Should the company accept the project? yes or no