Pimento Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income of $200,000. The equipment will have an initial cost of $1,200,000 and have an 8- year life. The salvage value of the equipment is estimated to be $200,000. The hurdle rate is 10%. Ignore income taxes. Answer the following: a. What is the accounting rate of return (answer in blank 1)? b. What is the payback period (answer in blank 2)? c. What is the net present value (answer in blank 3)? d. What would the net present value be with a 15% hurdle rate instead (answer in blank 4)? e. Based on the NPV calculations, in what range would be the equipment's internal rate of return fall (i.e., less than 10%, between 10 and 15%, or greater than 15%)(answer in blank 5)? Blank # 1 Blank # 2 Blank # 3 Blank #4 Blank # 5