The Company uses a $12\%$ discount rate in evaluating capital investments. ABC uses straight$-$line depreciation. The average reported operating income for the company is $$1,630,500.$The option is enumerated below.

Invest in a new fleet of automobiles for Auto Department. The automobiles consist of a mix of cars for salespeople, delivery trucks to ship completed products, and specialty cargo trucks for transporting raw materials used in production. The selected vehicles are more fuel efficient, equipped with the latest technology to help avoid accidents, and provide greater capacity for the needs of the company. The fleet of vehicles could be purchased for $$800,000$ and are expected to have a $10-$year useful life. The Company expects a net cash inflow of $$141,700$ each year for $10$ years.

Compute the following for the above$-$referenced investment option:

$1.$Payback period$/$method $($assume cash inflows occur evenly throughout the year$)$

$2.$Unadjusted rate of return $($also called simple rate of return and accounting rate of return$)$

$3.$NPV $($assume that cash inflows occur at year$-$end$)$

$4.$Internal rate of return $($IRR$)$

$5.$ Present Value Indexects a net cash inflow of $$141,700$ each year for $10$ years.