Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.):

Sales (cash)			$	500000
Less cash variable expenses				200000
Contribution margin				300000
Less fixed expenses:
Fixed cash expenses	$	150000
Depreciation expenses		45000		195000
Net operating income			$	105000

The company's required rate of return is 12%. Calculate: did you copy?y

1. The payback period
2. The net present value
3. the internal rate of return (approximate value)