BUSN 379 – Yappy Company is considering a capital investment of $320,000

3. (TCO 6) Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $65,000, respectively. Yappy requires a 10% return on all new investments.Part (a) Compute each of the following: 1: Payback period. 2: Net present value. 3: Profitability index. 4: Internal rate of return. 5: Accounting rate of return.(b) Indicate whether the investment should be accepted or rejected