Ursus, Inc. is considering a project that would have a ten-year life and would require a $1,000,000 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: ( ignore income taxes)

Sales	$2,000,000
Variable Expenses	$1,400,000
Contribution Margin	$ 600,000
Fixed Expenses: Fixed out of pocket cash expenses ($300,000) depreciasion ($100,000) ($400,000)
Net operating Income $ 200,000

All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 12%. (Ignore income taxes in this problem.

Required:

a) What is the project's net present value?

b) What is the project's internal rate of return to the nearest whole percent

c) What is the project's payback period

d) What is the project's simple rate of return?