Honeydew Company is considering a project that would have a three-year life and would require a $1,369,920 investment in equipment. At the end of three years, the project would terminate, and the equipment would have no salvage value. The project would provide net operating income each year as follows: Income Statement Sales $2,000,000 Variable expenses 1.300,000 Contribution margin 700,000 Fixed expenses 200,000 Net operating income 500.000 All these items, except for depreciation of $100,000 per year, represent cash flows. The depreciation is included in the fixed expenses. The company's required rate of return is 12%. (Ignore income taxes in this question.) Required: (a) Compute the project's net present value. (5 marks) (b) Compute the project's profitability index. (3 marks) (c) Compute the project's payback period. (3 marks) (d) Compute the project's simple rate of return. (3 marks) (e) Explain whether Honeydew Company should accept the new project and discuss whether the company should be concerned about the other methods you have calculated above in making this decision and explain your reasoning, (5 marks) (Total for Question 4: 19 marks)