o mumber of gotenal capital nvestments. Because These propects vary in ature, nbai nivestment, and time horon,management is trdng t omicult to compare them Assume straight line depreciahion method is used Project 1: Retooling Manufacturing Facility his prosct would requre an nat nestment of $,800,00. I would openerato $1 03%,000 nal ertcash how each yrar the rnew machiney han a useta ie of eigh yers and a sahvage value of $1,228,000 Project 2: Purchase Patent for New Product The parent woukd cost $4 065,000, which would be Tuly amortized over tive years Production of imes product wioued generate $094,300 adstional arvual net income for Heame Project 3: Purchase a New Fleet of Delivery Trucks Heame could purchase 25 new delvery trucks at a cost of $210.000 each The neet wouid have a usetul ite of 10 years, ard each truck would have a salvage vatue of $6,900 Purchasing the feet would allow Heame to expand ts customer territory resulning in $1,155,000 cf additional net income per year Required: 1. Determine each project's accounting rate of return. (Round your answers to 2 decimal places.) Accounting Rate of Return Project 1 Project 2 Project 3 2. Determine each project's payback period. (Round your answers to 2 decimal places.) Payback Period Years Years Years Project 1 Project 2 Project 3 3. Using a discount rate of 10 percent, calcutate the net present value of each project (Fufure Valtue ot $1. Present Vakve of $1. Euture Value Anouity t 51, Present Valtuc Annuty. of $1 )(Use e the net present value of each project (Future Value ot $1. Present Valve of S1. Euture Value Annulity ot 51. Present Vatue Annuty of $1 (Use appropriate factors) from the tables provided. Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.) Project 1 Project 2 Project 3 4. Determine the profitability index of each project and roritize the pro ots for Hearne (Round your intermediate calculations to 2 decimal places Round your final answers to 4 places.) Project Project 2 Project 3