Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $172.120 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $79,000, with associated expenses of $27000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Alleglence's tax rate is 30 percent. (Hint The $172,120 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. 1 4 years Payback period Net present value 2 S (0.007) X