Sonic inc sel business software currently, all of its programs come on disks. Two proposal first one is to provide software on computer chips which requires a 300,000 investment in equipment. Second make software available through a computerized software bank initial investment 240,000 neither proposal is expected to have any salvage value or an estimating life cycle six years. Estimated incremental annual revenue of investment computer chip equipment 300,000 software bank installation 160,000 Estimated incremental annual expenses of investment ( including taxes and depreciation). Computer chip equipment 250,000 software bank installation 130,000 A minimum return on investment of 15% is required

A. Compute the payback period of each proposal 

B. Compute the return on average investment of each proposal 

C. Compute the net present value of each proposals 

D. What financial factors should be considered 

E. Which of Sonic employees would most likely underestimate the benefits of investing in the two banks. why?