Bella Company is considering a long$-$term capital investment project in laser equipment. This will require an investment of $$500,000,$ and it will have a useful life of $10$ years. Annual net income is expected to be $$35,000$ a year. Depreciation is computed by the straight$-$line method with no salvage value. The company$$s cost of capital is $12\%.($Assume cash flows can be computed by adding back depreciation expense.$)$

Instructions $($Round all computations to two decimal places.$)$

Required:

$($a$)$ Compute the cash payback period for the project.

$($b$)$ Compute the net present value for the project. $($Assume a $10-$year life and a $12\%$ discount rate is $5\mathrm{.}65022)$

$($c$)$ Compute the annual rate of return for the project.

$($d$)$ Should the project be accepted? Why?