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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $378,000 and to have a seven-year life and no salvage value. It will be depreciated on a straight ine basis. Business Solutions pects to sell 100 units of the equ ument's product each year. The xpected annual Income related to this equipment follows. $ 377,000 Sales Costs Materials, labor, and overhead (except depreciation) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (305) Net Income 200,000 54,000 30,000 292,000 85,000 25,500 $ 59,500 Required: (1) Compute the payback period. Choose Numerator: Payback Period Choose Denominator: 1 1 = . Payback Period Payback period (2) Compute the accounting rate of return for this equipment Chooso Numerator: Accounting Rate of Return Choose Denominator Accounting Rate of Return Accounting rate of retum Park Co. is considering an investment that requires immediate payment of $35,000 and provides expected cash inflows of $14,600 annually for four years. What is the investment's payback period? Payback Period Choose Denominator Choose Numerator: Payback Period Payback period 1-a. What is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on NPV alone, should Park Co. Invest? Complete this question by entering your answers in the tabs below. Required 1A Required 10 What is the net present value of this investment? Cash Flow Select Chart Annual cash flow Amount PV Factor Present Value Net present value NA Required 13 >