Flynn Corporation is debating whether to purchase a new computerized production system. The system will cost $450,000 and have an estimated 10-year life with a salvage value of $70,000. The estimated operating results from the new production system are as follows:

Incremental revenue $180,000

Incremental expenses:

Expenses other than depreciation $85,000

Depreciation (straight line basis) 38,000 ($123,000)

Incremental net income $57,000

All revenue and expenses other than depreciation will be received and paid in cash. Compute the following for this proposal:

a) Annual net cash flow: $ _________

b) Payback period:________years

c) Return on average investment: _________%

d) Net present value, discounted at an annual rate of 6% (present value of $1 due in 10 years, discounted at 6%, is 0.558; present value of $1 received annually for 10 years, discounted at 6% is 7.360): $_____