Trying to pivot out of its unwise business strategy, Claribel Nose Hair Inc. is musing a venture that would have a 7-year life and require a $1,700,000 investment in equipment.

The project would terminate at the end of seven years, and the equipment would have no salvage value.

For each of the seven years, the project would provide sales of $2,000,000, incur variable expenses of 70% of sales, fixed out-of-pocket expenses of $200,000, and depreciation using the straight-line method. All revenues and expenses, except for depreciation, represent

The company's required rate of return is 8%.

Compute the following measures for this project.

a) The internal rate of return

b) The payback period

c) the simple rate of return

d) For this part only, assume that $60,000 for inventories and other working capital is required to start the project. The investment in working capital would be returned at the end of the seven years. Also, assume that the equipment could be sold at that time for 1% of its original cost. Compute the project's net present value