4. Learner company is considering a project that would have an eight-year life and require a 2,400,000 investment in equipment.At the end of 8 years, the project would terminate and the equipment would have no salvage value.The project would provide net operating income each year as follows:

Sales 3,000,000

Variable expenses 1,800,000

Contribution margin 1,200,000

Fixed expenses:

Advertising, salaries & other out of

Pocket costs 700,000

Depreciation 300,000 1,000,000

Net Operating Income 200,000

The company's discount rate is 12%.

Compute for the following:

a. Annual net cash inflow

b. NPV

c. Payback Period

d. ARR