Please show all work and number each answer accordingly. When calculating the NPV use the following five columns (use for all NVP calculations):

Item, Year(s), Cash Flow, Discount Factor, Present Value of Cash Flows

The partnership of Michele and Mark is considering the following long-term capital investment proposal. Relevant data on the project is listed below. Salvage value is expected to be zero for theproject. Depreciation is computed by the straight-line method. The companys rate of return is the companys cost of capital which 12%.

		Brown
Capital Investment		$200,000.00
Annual Net Income:
Year 1		$25,000.00
Year 2		$16,000.00
Year 3		$13,000.00
Year 4		$10,000.00
Year 5		$8,000.00
Total		$72,000.00

Required:

a. Compute the cash payback period for the project. (Round to two decimal places)

b. Compute the net present value for the project (round to the nearest dollar)

c. Compute the annual rate of return for the project.

d. Compute the profitability index for the project.