(Ignore income taxes.) A project that would have a ten-year life and would require a $1,000,000 investment in equipment is considered. At the end of ten years, the project would terminate and the equipment would have no salvage value.

The project would provide net operating income each year as follows: a. Compute the project's net present value. b. Compute the project's internal rate of return to the nearest whole percent. c. Compute the project's payback period. d. Compute the project's simple rate of return.

Sales $20,00,000 Variable expenses 14,00,000 Contribution margin 6,00,000 Fixed expenses: Fixed out-of-pocket cash expenses $3,00,000 Depreciation 1,00,000 4,00,000 Net operating income $2,00,000