Winett corporation is considering an investment in special$-$ purpose equipment to enable the company to obtain a four$-$ year municipal contract. The equipment cost $85,000$ 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 $303,000$

Expenses other than depreciation $218,00$

Depreciation $($ straight$-$line basis$)21,250239,250$

Increase in net income from contract work $63,750$

All revenue and all expenses other than depreciation will be received or paid in cash in the same period as recognized for accounting purpose

Compute the following for Winett$$s proposal to undertake this contract:

A$.$ PAYBACK PERIOD

B$.$ Return on investment round your percentage answer to $1$ decimal place

C$.$ Net present value of the proposal to undertake contract work, discounted at an annual rate of $8$ percent $($ refer to the table in exhibit $26-4$ round your PV factors to $3$ decimal places