DD Company is considering a long$-$term capital investment

project in printer equipment. This will require an investment of

$$480,000,$ and it will have a useful life of $5$ years. Annual net

income is expected to be $$25,000$ a year. Depreciation is

computed by the straight$-$line method with no salvage value. The

company's cost of capital is $12\%.($Hint: Assume cash flows can

be computed by adding back depreciation expense.$)$

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

two decimals.$)$

$($b$)$ Compute the net present value for the project. $($Discount

factor $-5$ Period @ $12\%=3\mathrm{.}60478)$

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

$($d$)$ Should the project be accepted? Why? $(15$Marks$)$