Pack & Carry is debating whether to invest in new equipment to manufacture a line of high-quality luggage. The new equipment would cost $900,000, with an estimated four-year life and no salvage value. The estimated annual operating results with the new equipment are as follows. (Use Exhibit 26-4.) Revenue from sales of new luggage $987, 000 Expenses other than depreciation $ 675, 000 Depreciation (straight-line basis) 225 , 000 900 , 000 Increase in net income from the new line $ 87,000 All revenue from the new luggage line and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes. a. Compute the annual cash flows for the investment in the new equipment to produce the new luggage line. b. Compute the payback period for the investment in the new equipment to produce the new luggage line. (Round your answer to 1 decimal place.) c. Compute the return on average investment for the investment in the new equipment to produce the new luggage line. (Round your percentage answer to 1 decimal place (i.e., 12.34 to be entered as 12.3).) d. Compute the total present value of the expected future annual cash inflows, discounted at an annual rate of 10 percent for the investment in the new equipment to produce the new luggage line. (Round your "PV factor" to 3 decimal places and final answer to the nearest dollar amount.) e. Compute the net present value of the proposed investment discounted at 10 percent for the investment in the new equipment to produce the new luggage line. (Round your "PV factor" to 3 decimal places and final answer to the nearest dollar amount.) a. Annual cash flows b. Payback period years C. Return on average investment d. Total present value e. Net present value