A$.$ A certain investment proposal requires an initial outlay of $$450,000,$ and has an expected useful life of $6$ years, with an annual cash inflow of $$90,000$ received at the end of each year. The company uses the straight$-$line method of depreciation. Ignore income taxes. The company has a $12\%$ incremental cost of borrowing.Instructionsa$)$ Compute the payback for the proposal.b$)$ Compute the net present value of the proposal.c$)$ Would you recommend this proposal be accepted? Explain.PeriodPresent Value of an Annuity of $112\%4\mathrm{.}111$PeriodPresent Value of $112\%0\mathrm{.}507$B$.$ Salt Co$.$ is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $$170,000$ but will also increase annual expenses by $$50,000$including depreciation. The facility will cost $$720,000$ to build but will have a $$30,000$salvage value at the end of its $15-$year useful life.InstructionsCalculate the annual rate of return on this facility.