Question 5 (20 Marks) Grover Contracting, Inc., is considering the purchase of a new cement truck trading it in on a new one. The truck's estimated salvage value at the end of the five-year period is approximately $25,000. The truck is expected to increase annual income and cash flows by the following amounts: Year 1 2 3 4 5 Increase in Income $ 10,000 12,000 14,000 16,000 18,000 $70,000 Increase in Net Cash Flows $ 37,500 37,500 37,500 37,500 37,500 $187,500 Required: a. Compute the payback period associated with this investment. b. Compute the return on average investment of this proposal. C. Compute the net present value of this investment if Grover requires a minimum return of 12%. d. Comment on your findings. 3