Investment Corp. (IC) is considering foreign direct investment in a facility overseas. The investment will require $1,000,000 upfront, and the required rate of return is 6%. The facility should produce for five years.

The following data concerns the relevant cash flows:

Revenues are projected to be $450,000 for the first two years and $200,000 for the last three years.

Fixed costs of operating the facility will be $10,000 per year paid at the beginning of the year.

Variable costs are expected to be 30% of gross revenues.

Maintenance costs are expected to be $1,000 for the first year, $3,000 for years 2, 3, and 4, and $7,000 for year 5.

IC uses straight-line depreciation, and the facility is estimated to have a salvage value of $200,000.

The flat tax rate is 25%.

Required: calculate the following -

Net Present Value (NPV)

Payback Period

Book Rate of (ROI)