Kangaroo Enterprises is going to consider a new project. They just learned of various tools to assist them in determining whether or not to take on this project and are interested in comparing them all. This is a four year project. The equipment necessary for the project costs $$38,600$ up front and there will be a salvage value of $$2,500$ at the end of the four years. Annual income for the project is expected to be $$12,600$ for the first year and then $$15,600,$ $$11,600$ and $$8,600$ for years two, three, and four, respectively. They have a required rate of return of $10\%.$ They also normally accept jobs that have a three year payback or less.

Calculate each of the following and make a recommendation $($based solely on each individual calculation$)$ of whether or not to accept the project. Please find the :

Net present value.

Payback period.

Discounted payback period.

Internal rate or return.

Profitability index.