ABC Incorporated manufactures the best products in town. Because the business is thriving several departments need an investment of additional resources to accommodate their expanding needs. The management at ABC must decide which investment is the best option for the company. ABC uses a $12\%$ discount rate in evaluating capital investments. ABC uses straight$-$line depreciation. The average reported operating income for the company is $$1,630,500.$The option is enumerated below.

OPT: Purchase a new company$-$wide ERP system, which can link the relevant functions. This will improve communications among all departments, reduce redundant information, and minimize errors. The ERP system has a cost of $$536,000,$ which includes training, setup, and periodic upgrades to avoid obsolescence for $6$ years. It has an estimated useful life of $9$ years and expected net cash inflow of $$40,736.$REQUIRED

You may use Excel's built$-$in functions for NPV and IRR or you may make the calculations using the appropriate present value table. Compute the following for the above$-$referenced investment options:$1.$ Payback period$/$method $($assume cash inflows occur evenly throughout the year$)2.$ Unadjusted rate of return $($also called simple rate of return and accounting rate of return$)3.$ NPV $($assume that cash inflows occur at year$-$end$)4.$ Internal rate of return $($IRR$)5.$ Present Value Index