Advanced Products is considering the purchase of a computer$-$aided manufacturing system

that requires an initial investment of $$750,000$ and is expected to provide an increase in net

income of an increase in net income of $$100,000$ and average annual cash benefits and

savings of $$150,000$ for the next $4$ years. Their current cost of capital is $10\%.$ Required:

Compute the net present value of the investment. Following are selected factors from

tables for $4$ years at $10\%$ :

Compute the Accounting Rate of Return.

Compute the payback period of the investment.

Required Computation: