New Equipment purchase St$,$ James Construction Ltd$.$ is considering the purchase of a new Excavator tractor costing $$100,000.$ The company intends to keep the tractor for five years before trading it in on a new one. The tractor$$s estimated salvage value at the end of the five$-$year period is approximately $$15,000.$ The tractor is expected to increase annual income and cash flows by the following amounts:

Required:$$

$1.$ Calculate the Net Present Value $($NPV$)$

$$ Calculate the Payback Period$$

$$ Compute the Return on Investment $($ROI$)$ Management has stipulated a required rate of return $($RRR$)$ of $10\%$ for any investment.