Exercise 16-36 Payback Period; Uneven Cash Flows (Section 3) ( LO 16-1, 16-6, 16-8) Alleglence Insurance Company's management is considering an advertising program that would require an Initial expenditure of $180,395 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $84,000, with assoclated expenses of $29,500. The additional sales revenue and expenses from the advertising program are projected to Increase by 10 percent each year. Alleglence's tax rate is 30 percent. (Hint: The $180,395 advertising cost is an expense.) Use Appendix A for your reference. (Use approprlate factor(s) from the tables provided.) Required: 1. Compute the payback perlod for the advertising program. 2. Calculate the advertising program's net present value, assuming an after-tax hurdle rate of 10 percent. (Round your Intermedlate calculations and flinal answer to the nearest whole dollar.)