Jackson Company invests $40,000 in a new piece of equipment.The equipment is expected to yield the following amounts per year for the equipment's four-year useful life:

Cash revenues

$70,000

Cash expenses

(45,000)

Depreciation expense (Straight-line)

(10,000)

Net Income

$15,000

Salvage value is zero and the required rate of return is 14%.

Part 1: Calculate the payback period (round your answer to two decimals):

Part 2:Using original investment, compute the accounting rate of returnARR (round your answer to two decimals)

Part 3: Compute the NPV (net present value) of this investment in equipment. Use present values table on next page. Show your work.