Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $185,360 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $87,000, with associated expenses of $31,000. 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 $185,360 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.) 1. Payback period 2 Net present value | MU VW is