12:45 PM Wed Jul 14 [I] E Content AA oz: CengageNOWvZ | Online teaching and learni... 0 v2.0engagenow.com G Search Textbook Solutions | Chegg.com O ?100%@' ['1'] + u Homework Help - Q&A from Online Tutors -... CH12 HOMEWORK 1. EX.12.01.ALGO 2. EX,12,03,ALGO 3. EX.12.04.ALGO 4. EX.12.05.ALGO 5. EX,12,07,EXCEL ALGO 6. EX.12.14.ALGO 7. EX.12.16.ALGO 8. BE,12,01,ALGO 9. BE.12.05 10. EX.12.21.ALGO Progress: 6/10 items Assignment Score: 11.67% eBook Show Me How Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc, is considering acquiring equipment at a cost of $68,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash ows of $34,000. The company's minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interest Year 6ln 10% 12%: 15lo 20%: 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 e 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. [1. The cash payback period. v c. The net present value. Use the above table of the present value of an annuity of $1. Round to the nearest dollar. If required, use a minus sign to indicate negative net present value for current grading purpose. Present value of annual net cash ows Amount to be invested Net present value $ $: $ Check My Work 2 more Check My Work uses remaining. All work saved. ( Previous Next > Save and Exlt Submit Asslgnment for Giadlng