Mimi Company is considering a capital investment of $275,000 in new equipment. The equipment is expected to have a 5-year useful life with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income is expected to be $25,000. Mimi's cost of capital is 10%. Compute the following:

a. Annual net cash flow b. Annual rate of return c. Cash payback period d. Net present value for Mimi Companys capital investment