Ayub became a baseball enthusiast at a very early age. All of his baseball experience has

provided him valuable knowledge of the sport, and he is thinking about going into the

batting cage business.

He estimates the construction of a state-of-the-art facility and the purchase of necessary

equipment will cost $539,000. Both the facility and the equipment will be depreciated over

14 years using the straight-line method and are expected to have zero salvage values. His

required rate of return is 12% (present value factor of 6.6282).

Estimated annual net income is as follows:

Revenue $270,000

Less:

Utility cost 28,000

Supplies 7,500

Labour 110,000

Depreciation 38,500

Other 23,000 207,000

Net income $63,000

Required

For this investment, calculate:

a) The net present value.

b) The internal rate of return.

c) The cash payback period.

Can you please answer the above with all calculations ?