Tandy Inc. is considering a project that would have a ten-year life and would require a $2,000,000 investment in equipment. At the end of ten years, the project would terminate, and the equipment would have no salvage value. The project would provide net income each year as follows: Sales $2,000,000 Less: Variable Expenses $1,400,000 Contribution Margin $600,000 Less: Fixed Expenses $400,000 Net Income $200,000 A total of $200,000 of depreciation is included in the fixed expenses. The company's required rate of return is 12% (ignore the impact of income taxes for this question). Required: 1. What is the project's simple rate of return? Explain why or why not Tandy should pursue this project based on this result. (2 marks) 2. What is the project's payback period? Explain why or why not Tandy should pursue this project based on this result. (2 marks) 3. What is the project's net present value? Explain why or why not Tandy should pursue this project based on this result. (3 marks) 4. What is the project's internal rate of return? Explain why or why not Tandy should pursue this project based on this result. (2 marks) 5. What method(s) would you recommend Tandy use to make this decision and why? (1 mark)