Capital Budgeting Example Revco Products is considering a project that would have a five-year life and require a $2,000,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide the net operating income each year as follows: Sales $3,000,000 Variable expenses 1,700,000 Contribution margin 1,300,000 Fixed expenses: SG&A $600,000 Depreciation 400,000 Total fixed expenses 1,000,000 Net operating income $ 300,000 The company's tax rate is 40% and its discount rate is 12%. REQUIRED: Compute project's NPV, IRR, Payback Period (PB), discounted Payback Period, and Profitability Index (PI)