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Ursus, Inc., is considering a project that would have a ten-year life and would require a $1,995.000 investment in equipment. At the end of ten

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Ursus, Inc., is considering a project that would have a ten-year life and would require a $1,995.000 investment in equipment. At the end of ten years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows (gnore income taxes.) Sales Variable expenses Contribution margin Fixed expenses Fixed out-of-pocket cash expenses Depreciation Net operating income $2,100,000 1,400,000 700,000 $350,000 199,500 549.500 $ 250,500 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. All of the cove items, except for depreciation, represent cash flows. The company's required rate of return is 9% Required a. Compute the project's net present value (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Compute the project's internal rate of return(Round your final answer to the nearest whole percent.) c. Compute the project's payback period. (Round your answer to 2 decimal place.) d. Compute the project's simple rate of return (Round your final answer to the nearest whole percent.) a Net present value 1. Internal rate of return han 150,500 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 9%. Required: a Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amour b. Compute the project's internal rate of return. (Round your final answer to the nearest whole percent.) c. Compute the project's payback period (Round your answer to 2 decimal place.) d. Consute the project's simple rate of return. (Round your final answer to the nearest whole percent.) % a. Net present value b.Internal rate of return G Payback period d. Simple rate of return years %

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