Bosworth Company is considering a capital investment of \($168,000\) in additional productive facilities. The new machinery is expected to have a useful life of 6 years with no salvage value. Depreciation is by the straight-line method. During the life of the in- vestment, annual net income and cash inflows are expected to be \($20,000\) and \($48,000\) respectively. Bosworth has a 15% cost of capital rate which is the minimum acceptable rate of return on the investment.

Instructions
(Round to two decimals.)

(a) Compute (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure.

(b) Using the discounted cash flow technique, compute the net present value