Hearne Company has a number of patential capital investments. Because these projects vary in nature intal investment, and time horizon, management is finding it difficult to compare them. Assume straight line depreciation method is used. Project 1: Retooling Manufacturing Facility This project would require an initial investment of $5.200,000. It would generate $928,000 in additional net cash flow each year. The new machinery has a useful life of eight years and a salvage value of $1,084,000 Project 2: Purchase Patent for New Product The patent would cost 33,645,000, which would be fully amortized over five years. Production of this product would generate $583,200 additional annual net income for Heame. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $150,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $5,700. Purchasing the feet would allow Hearne to expand its customer territory resulting in $600,000 of additional net income per year. Required: 1. Determine each project's accounting rate of relurn (Round your answers to 2 decimal places.) Project 1 Project 2 Project 3 Accounting Rate af Return 13.16% 32.00% 3 0,83% 2. Determine each projects payback period. (Round your answers to 2 decimal places.) Pro 1 Project 2 Project 3 Payback Period 560 Years 6 .25 Years 8.25 Years 3. Using a discount rain of 10 paroant, calculate the net prasant value of aach project. Future Value of $1. Present Value of $1, Future Value Anruly of 1, Present Vello Annuity of St.) (Use appropriate factors) from the tables provided. Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.) Net Present Project 1 Project 2 Project 3 4. Determine the profitability index of each project and prioritize the projects for Heame. (Round your intermediate calculations to 2 decimal places. Round your final answers to 4 decimal places.) Profitability Rank Index Project 1 Project 2 Project 3 D