21. A company is considering investing $500,000 in a project that is expected to generate $66,000 in annual net income for the next 10 years with a salvage value of $30,000. The company's cost of capital is 12%. Calculate the following: a. Annual Cash Flows Depreciation = (Initial investment - Salvage) / Useful life con = (500,00 30,000)/10 = 47, QUO Annual cash flows Annual Net Income Initial Investment - 66,000 / 500px b. Accounting Rate of Return 1132 or 13.2% : NOI Or o n calato C. Payback Period. Initial Investment i = soooo ( 113,000 = (4.42 years d. Net Present Value. onto Tinella Year Cash Flows PV Factor (12%, 10 Yrs.) Present Value so/300 113.600 -10 10 5.6502 .3936 Net Prestyle 6 9 (500.000 38, 412.60 .560 $148, 132.60 e. Based on the NPV, this an acceptable project? Yes because NPV ispositive so it earns more than the ducanted rate. des bonitate f. Is the IRR of this project higher, lower, or equal to 12%? How do you know? IRR is greater than 12% because NPV is positive