Exercise 16-36 Payback Period; Uneven Cash Flows (Section 3) (LO 16-1, 16-6, 16-8) Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $187,015 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $88,000, with associated expenses of $31,500. The additional sales revenue and expenses from the advertising program are projected to Increase by 10 percent each year. Allegience's tax rate is 30 percent. (Hint: The $187,015 advertising cost is an expense.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program's net present value, assuming an after-tax hurdle rate of 10 percent. (Round your Intermediate calculations and final answer to the nearest whole dollar.) 1. Payback period 2. Net present value years