Furqua Company is considering a long-term capital investment project in laser equipment. This will require an investment of $288,000, and it will have a useful life of five years. Annual net income for 5 yearsis expected to be:

Year 1 2 3 4 5

Annual Net Income$20,000$18,000$24,000$25,,000$22,000

Depreciation is calculated by the straight-line method with no salvage value.

The company's cost of capital is 10%. (Hint:Assume cash flows can be calculated by adding back depreciation expense).

Instructions:

(a).Calculate the cash payback period for the project (Round to two decimals).

(b).Calculate the net present value for the project (Round to nearest dollar).

(c).Calculate the annual rate of return for the project (Round to two decimals).

(d).Should the project be accepted? Why or why not?