Helicopter Gear is planning to expand its product line, which requires investment of $478,800 in special-purpose machinery. The machinery has a useful life of six years and no salvage value. The estimated annual results of offering the new products are as follows:

Revenue	$	531,000
Expenses (Including straight-line depreciation)		(504,000	)
Increase in net income	$	27,000

All revenue from the new products and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes.rev: 08_09_2012

The payback period for this proposed investment is:

The return on average investment for this proposed investment is closest to:

Compute the net present value of this proposed investment, using a discount rate of 10%. (An annuity table shows that the present value of $1 received annually for six years, discounted at 10%, is 4.355.)