Carry$-$Along is debating whether or not to invest in new equipment to manufacture a line of high$-$quality luggage. The new equipment would cost $$850,000,$ with an estimated four$-$year life and no salvage value. The estimated annual operating results with the new equipment are as follows:

Revenue from sales of new luggage line $$925,000$

Expenses other than depreciation $$625,000$

Depreciation $($straight$-$line basis$)250,000(875,000)$

Increase in net income from the new line $$50,000$

All revenue from the new luggage line and all expenses $($except depreciation$)$ will be received or paid in cash in the same period as recognized for accounting purposes.

The company uses a discount rate of $12\%$ in evaluating all capital investments. $($Note: An annuity table shows that the present value of $$1$ received annually for four years discounted at $12\%$ is $3\mathrm{.}037.)$

Required:

Compute the following for the investment in the new equipment to produce the new luggage line:

$($A$)$ Annual cash flow

$($B$)$ Payback period

$($C$)$ Return on average investment $($Round your intermediate calculations and your final answer, stated as a percentage, to one decimal point.$)$

$($D$)$ Total present value of the expected future annual cash flows

$($E$)$ Net present value of the proposed investment