XYZ Company is considering a capital budgeting project that would require a $3,400,000 investment in equipment with a useful life of five years and no salvage value

The discount rate is 16%.

Over the next five years, the project would provide additional sales of $3,000,000 per year, additional net income of $500,000 per year, and additional cashflow of $1,100,000 per year.

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

B) What is the project's payback period?

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

D) Should the company pursue this investment opportunity?