(Answered) The following is a simplified project annual income

Accounting

The following is a simplified project annual income statement for Ma & Pa Incorporated for each year of an eight-year project. Its upfront cost is $2,000. Its cast of capital is 12 percent.
Sales
                               $925.00
less cash expenses   310.00
less depreciation      250.00
Earnings before taxes   $365.00
Less taxes (at 35%)       127.75
Net income       $237.25

a. Compute the project's after-tax cash flow.
b. Compute and interpret the project's NPV IRA, profitability index, and payback period.

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