Gibbs is considering an investment project. The estimated income from operations and net cash flows from the investment is as follows: YEAR 1 2 3 4 5 TOTAL STUDIO INCOME FROM OPERATIONS $ 122,800 102,800 72,800 52,800 7,200 $358,400 NET CASH FLOWS $270,000 250,000 220,000 200,000 140,000 $1,080,000 The project requires an investment of $736,000. Straight-line depreciation will be used, and a residual value of $36,000 is expected. A rate of 12% for purposes of the net present value analysis. Instructions Compute the following: 1. The Cash Payback Period 2. Average Rate of Return (Round to one decimal place) Net Present Value (Round present values to the nearest dollar) 3. 4. Present Value Index