Winett Corporation is considering an investment in special$-$purpose equipment to enable the company to obtain a four$-$year municipal contract. The equipment costs $$196,000$ and would have no salvage value when the contract expires at the end of four years. Estimated annual operating results of the project are as follows.

Revenue from contract sales $ $316,000$

Expenses other than depreciation $ $218,000$

Depreciation $($straight$-$line basis$)49,000267,000$

Increase in net income from contract work $ $49,000$

All revenue and all expenses other than depreciation will be received or paid in cash in the same period as recognized for accounting purposes. Compute the following for Winett$$s proposal to undertake this contract.

a$.$ Payback period.

b$.$ Return on average investment. $($Round your percentage answer to $1$ decimal place $($i$.$e$.,0\mathrm{.}123$ to be entered as $12\mathrm{.}3).)$

c$.$ Net present value of the proposal to undertake contract work, discounted at an annual rate of $5$ percent. $($Refer to the annuity table in Exhibit $264.)($Round your $"$PV factors" to $3$ decimal places.$)$