Trotting, Inc., is considering a project that would have a ten-year life and would require a $1,200,000 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:

The company's required rate of return is 12%.

: A. Compute the project's Internal Rate of Return_____________________________

B. Compute the project's Accounting Rate of Return__________________________

C. Compute the Payback period__________________________________________

D. List and comment on a few characteristics of the Payback Method.

$1,700,000 1,200,000 500,000 Sales, Variable expenses. Contribution margin Fixed expenses: Fixed out-of-pocket cash expenses Depreciation Net operating income.. $200,000 120,000 320,000 $ 180,000