Indoor Racing Ltd plans an investment of $500,000 for new Go Karts. During the five year life of the Go Karts the projected Net Income will be $50,000, $70,000, $90,000, $120,000 and $150,000 in years 1 through 5 respectively. Use straight-line depreciation on the Go Karts with no residual value at end of year 5. Also assume an opportunity cost of capital of 8%. a) Determine the Net Present Value of the investment

b) Determine the Payback Period:

c) Determine Accounting Rate of Return (ARR):ARR = Ave NI Initial Investment