Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,293,200. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows:

Required:
1. Compute the project€™s payback period.
2. Compute the project€™s accounting rate of return.
3. Compute the project€™s net present value, assuming a required rate of return of 10 percent.
4. Compute the project€™s internal rate of return.

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Year Cash Revenues Cash Expenses $2,981,160 2,981,160 2,981,160 2,981,160 2,981,160 $2,293,200 2,293,200 2,293,200 2,293,200 2,293,200 4