Hunter, Inc., is considering a project that would have a seven$-$year life and would require a $$1,810,000$ investment in equipment. At the end of seven 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

Variable Expenses

Contribution Margin

Fixed Expenses:

Fixed out$-$of$-$pocket cash expenses

Depreciation

Net Operating Income

$$850,000$

$450,000$

$400,000$

$50,000$

$130,000$

$$220,000$

All of the above items, except for depreciation, represent cash flows. The company's required rate of return is $8\%.$

Required:

a$.$ Compute the project's net present value.

b$.$ Compute the project's internal rate of return to the nearest whole percent.

c$.$ Compute the project's payback period.