Exerclse 26.6 (Algo) AnalyzIng a Capltal Investment Proposal (LO26-1, LO26-3) Winett Corporation is considering an Investment in speclal-purpose equipment to enable the company to obtain a four-year municlpal contract. The equlpment costs $156,000 and would have no salvage value when the contract explres at the end of four years. Estimated annual operating results of the project are as follows. All revenue and all expenses other than depreclatlon will be recelved or paid in cash in the same perlod as recognized for accounting purposes. Compute the following for Winett's proposal to undertake this contract. a. Payback perlod. b. Return on average Investment. (Round your percentage answer to 1 decimal place (l.e., 0.123 to be entered as 123).) c. Net present value of the proposal to undertake contract work, discounted at an annual rate of 12 percent. (Refer to the annulty table in Exhloit 26-4.) (Round your "PV factors" to 3 decimal places.)