NPV of Investment for Oven Purchase for Fullfi Current Year Year 1 Year 2 Year 3 Sales (Unfulfilled Demand) 164250 164250 164250 Sales Price per Unit @ $3.09 $ 507,532.50 $ 507,532.50 $ 507,532.50 Variable Costs ($38.75/45) $ 141,437.50 $ 141,437.50 $ 141,437.50 Contribution Margin $ 366.095.00 $ 366,095.00 $ 366,095.00 Present Value of Cash Flows N =5, IY=12%, PMT=366095, FV=0 $ 1,319,690.54 Investment in Oven $ 300.000.00 NPV of Investing in Oven $ 1,019,690.54 CM per year for Unfulfilled Demand $ 366.095.00 Cost of New Oven 300,000.00 Profit per year/Annual Cash Flows 66,095.00 Profit on Investment 0.22 22% Payback Period (Years) 4.5