Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $195,290 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $93,000, with associated expenses of $34,000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience's tax rate is 30 percent. (Hint. The $195,290 advertising cost is an expense) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program's net present value, assuming an after-tax hurdle rate of 10 percent. (Round your intermediate calculations and final answer to the nearest whole dollar.) Answer is complete but not entirely correct. Fu \begin{tabular}{rrrrrrrrr} \hline 11 & 1.540 & 1.898 & 2.332 & 2.853 & 3.479 & 4.226 & 7.430 \\ 12 & 1.601 & 2.012 & 2.518 & 3.139 & 3.896 & 4.818 & 8.916 \\ 13 & 1.665 & 2.133 & 2.720 & 3.452 & 4.364 & 5.492 & 10.699 \\ 14 & 1.732 & 2.261 & 2.937 & 3.798 & 4.887 & 6.261 & 12.839 \\ \hline 15 & 1.801 & 2.397 & 3.172 & 4.177 & 5.474 & 7.138 & 15.407 \\ \hline 20 & 2.191 & 3.207 & 4.661 & 6.728 & 9.646 & 13.743 & 38.338 \\ \hline 30 & 3.243 & 5.744 & 10.063 & 17.450 & 29.960 & 50.950 & 237.380 \\ \hline 40 & 4.801 & 10.286 & 21.725 & 45.260 & 93.051 & 188.580 & 1.469.800 \end{tabular} Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity) (1+r)n1 \begin{tabular}{rrrrrrrr} \hline 11 & 13.486 & 14.972 & 16.646 & 18.531 & 20.655 & 23.045 & 32.150 \\ 12 & 15.026 & 16.870 & 18.977 & 21.385 & 24.133 & 27.271 & 39.580 \\ 13 & 16.627 & 18.882 & 21.495 & 24.523 & 28.029 & 32.089 & 48.497 \\ 14 & 18.292 & 21.015 & 24.215 & 27.976 & 32.393 & 37.581 & 59.196 \\ 15 & 20.024 & 23.276 & 27.152 & 31.773 & 37.280 & 43.842 & 72.035 \\ \hline 20 & 29.778 & 36.778 & 45.762 & 57.276 & 75.052 & 91.025 & 186.690 \\ 30 & 56.085 & 79.058 & 113.283 & 164.496 & 241.330 & 356.790 & 1.181.900 \\ 40 & 95.026 & 154.762 & 259.057 & 442.597 & 767.090 & 1.342.000 & 7.343.900 \end{tabular} Table III Present Value of $1.00(1+r)n1 r1(1(1+rn)1)