William 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 $886,000. 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 7.16073). Estimated annual net income is as follows: Revenue $371,500 Less Utility cost $43,500 Supplies $11,500 Labor 144,500 Depreciation 73,500 Other 42,000 315,000 Net income $56,500 SUP (a) Your answer is correct. The net present value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, eg. 5,275) Net present value $ 44895 (b) Your answer is correct. The internal rate of return. (use the above table.) (Round answer to O decimal places, e.g. 15%) Internal rate of return 10 % (c) The cash payback period. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years