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: $925,000 Revenue from sales of new luggage line.................... Expenses other than depreciation S625.000 Depreciation (straight-line basis). ............. 250.000 Increase in net income from the new line.. (875.000) $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. Work out the following for the investment in the new equipment to produce the new luggage line. (rounded to 2 decimal places) (a) Annual cash flow: $_ (3 marks) (b) Payback period _(3 marks) (c) Accounting Rate of Return: % (3 marks) (d) Total present value of the expected future annual cash flows, discounted at an annual rate of 12% ($1 received annually for four years discounted at 12% is 3.037): $_ _ ___(3 marks) (e) Net present value of the proposed investment: $ _