Acme Inc. is considering a project that would have a ten-year life and would require a $1,275,000 investment in equipment. At the end of ten years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows: sales................. $1,750,000 less variable expenses....900,000 contribution margin....850,000 less fixed expenses: Fixed out-of-pocket cash expenses.... $517,000 Depreciation........119,000 Total....636,000 Net operating income... $214,000 All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 16.5%. (ignore income taxes in this problem.) a) Compute the project's net present value. b) Compute the project's internal rate of return. c) Compute the project's payback period. d) Compute the project's simple rate of return. e) Based on your analysis above, should Acme, Inc. purchase this equipment? Why or why not. (you must address all four capital budgeting methods in this answer.)