Zain, Incorporated, is considering a project that would have a Eight-year life and would require a $8,025,750 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.): $3.450,000 1.650.000 1.800.000 Sales Variable expenses Contribution margin Fixed expenses: Fixed out-of-pocket cash expenses Depreciation Net operating income $350.000 207.500 686.000 $1.242.500 All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 8%. Required: 1. Compute the project's net present value. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Compute the project's internal rate of return. (Round your final answer to the nearest whole percent.) 3. Compute the project's payback period. (Round your answer to 2 decimal place.). 1 2 3 EXHIBIT 14B-1 Present Value of S1: Table Summary: Table of present values of S1. Periods are listed in first column: 1-30 and 40. Columns are given for percents from 4 percent to 25 percent. Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.7180.706 0.694 0.683 0.672 0.661 0.650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 4 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 5 0.822 0.784 0.7470.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.4370.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.731 0.6770,627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 9 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.2470.227 0.208 0.1910.176 0.162 0.149 0.137 0.126 0.116 0.107 6 8 10 EXHIBIT 14B-2 Present Value of an Annuity of SI in Arrears; Table Summary: Table of present values of an annuity of St in arrears. Periods are listed in first column: 1-30 and 40. Columns are given for percents from 4 percent to 25 percent. Periods 4% 5% 6% 796 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0,806 0.800 2 1.886 1859 1833 1.808 1.783 1.759 1736 1.713 1690 1668 1.647 1.626 1,605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 $ 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 6 3.2425.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 7 6,002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6210 5971 5.747 5.333 3.335 5.146 4 968 4.799 4.639 4.4874.344 4.207 4.078 3.954 3.837 3.726 3.619 3.318 3.421 3.329 7.435 7.108 6.802 6 515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.3034.163 4,031 3.905 3.786 3.673 3.566 3.463 10 8.111 7722 7360 7024 6.710 6.418 6.145 5.889 3.650 5.426 5 216 5.019 4.833 4.659 4.494 4,339 4.192 4.054 3.9233.799 3.682 3571 9