Hassink Housewares Ltd produces furniture and is evaluating the purchase of a new machine that will cost \($1\) 138 200 and have no residual value. Annual net cash inflows (including tax payments) for each of the next 10 years are expected to be \($204\) 000. The average annual profit is expected to be \($142\) 300. The company has a cost of capital of 10%.

Required

(a) Calculate the payback period.

(b) Calculate the net present value.

(c) Calculate the return on average investment.