Answer:
1. $116,000
2. Net Income = $81,220 and Net Cash flow = $247,000
3. The payback period is 1 year and 11 months
.
4. 31.85 %
5. $368,881.09
Explanation:
Straight Line Method charges a fixed amount of depreciation expense over the life of an asset.
Depreciation Expense = (Cost - Residual Value) / Estimated Useful Life
                                      = ($487,000 -  $23,000) / 4
                                      = $116,000
Net Income = Sales - Expenses
Sales                                                          $1,910,000
Less Expenses : 
Direct materials                                         ($495,000) 
Direct labor                                                ($674,000)
Overhead ( $335,000 + $116,000)           ($451,000)
Selling and administrative expenses       ($159,000)
Operating Income before tax                     $131,000
Income tax at 38%                                       ($49,780)
Net Income                                                   $81,220
Net Cash Flow Calculation :
Operating Income before tax                     $131,000
Add Depreciation Expense                        $116,000
Net Cash flow                                             $247,000
Payback period 
Payback period = Year 1 + Year 2 
         $487,000  =  $247,000 + $240,000 /   $247,000 × 12
                           =  1 year, 11 months
Therefore, the payback period is 1 year and 11 months
.
Accounting Rate of Return = Average Profits / Average Investment  × 100
Where, Average Profits = Sum of Profits ÷ Number of Years
                                        = ($81,220 × 4) ÷ 4
                                        = $81,220
and Average Investment = (Initial Investment + Scrape Value) ÷ 2
                                          = ($487,000 + $23,000) ÷ 2
                                          = $255,000
Therefore, Accounting Rate of Return = $81,220 / $255,000 × 100
                                                                = 31.85 %
NET PRESENT VALUE (NPV)
Calculation of NPV of Project A using a Financial Calculator :
($487,000)	Cfj
$247,000    	Cfj
$247,000       Cfj
$247,000       Cfj
$247,000       Cfj
6                I/Yr
Shift NPV   $368,881.09