Book rate of return on the net initial investment

Question

Problem: Harris Corporation provides the following data on a proposed capital project:

Initial investment                                                $240,000
Expected useful life                                               4 years
Increase in annual net cash inflow (before taxes)    $62,000
Required rate of return                                             12%
Income tax rate                                                       25%

Harris uses straight-line depreciation method with no salvage value.

Required: Compute for this project:

a. NPV.

b. IRR (to the nearest tenth of a percent)

c. Payback period.

d. Book rate of return on the net initial investment.