DO NOT COPY OTHER PROBLEMS AS QUESTIONS ARE DIFFERENT

29. Trotting, Inc., is considering a project that would have a ten-year life and would require a $1,200,000 investment in equipment. At the end of ten years, the project would terminate, and the equipment would have no salvage value. The project would provide net operating income each year as follows: $1,700,000 1,200.000 500,000 Sales. Variable expenses............. Contribution margin ... Fixed expenses: Fixed out-of-pocket cash expenses ......... Depreciation ......... Net operating income..... $200,000 120,000 320,000 $ 180,000 The company's required rate of return is 12%. Total points: 28 Required: A. Compute the project's Internal Rate of Return B. Compute the project's Accounting Rate of Return_ C. Compute the Payback period D. List and comment on a few characteristics of the Payback Method