Tom Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage business. He estimates the construction of a state-of-the-art building and the purchase of necessary equipment will cost $840,000. Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of return is 9% (present value factor of 7.1607). Estimated annual net income and cash flows are as follows:

Revenue: 350,500

Less:

Utility cost 40,000

Supplies 8,000

Labor 141,000

Depreciation 70,000

Other 38,500

Total 297,500

Net income: 53,000

Instructions: For this investment, calculate: (a) The net present value. (b) The internal rate of return. (c) The cash payback period.