The Zone Company is evaluating a capital expenditure proposal that requires an initial investment of $3,850,000. The machine will improve productivity and thereby increases net after-tax cash inflows by $868,000 per year for 7 years. It will have no salvage value. The company requires a minimum rate of return of 10 percent on this type of capital investment.

Required:

A - Determine the net present value (NPV) of the investment proposal.

B - What is the estimated payback period for the proposed investment, under the assumption that cash inflows occur evenly throughout the year? Round your answer to 2 decimal places.

C - What is the present value payback period for the proposed investment? Round your answer to 2 decimal places.

D - What is the estimated accounting rate of return (on initial investment) for the proposed project? Round your answer to 1 decimal place.