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Shamrock Company is considering a capital investment of $180,000 in additional productive facilities. The new machinery is expected to have a useful life of five years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $19,800 and $60,000, respectively. Shamrock has a 12% cost of capital rate, which is also the minimum acceptable rate of return on the investment. (a) X Your answer is incorrect. Calculate (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure. (Round cash payback period to 1 decimal place, e.g. 15.1 and annual rate of return to 2 decimal places, e.g. 15.12\%.) (1) Cash payback period years (2) Annual rate of return % Whispering Winds Company is considering the purchase of a new machine. The invoice price of the machine is $72,900, freight charges are estimated to be $2,970, and installation costs are expected to be $7,560. The annual cost savings are expected to be $27,000 for 10 years. Calculate the cash payback period. (Round answer to 2 decimal places, e.g. 15.25.) Vaughn Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $128,000 and have an estimated useful life of 5 years. The park will sell it for $65,000 at that time. (Amusement parks need to rotate rides to keep people interested.) The ride will be expected to increase net annual cash flows by $23,000. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Net present value $ Blue Spruce Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new The machine will cost $173,000, has an estimated useful life of 7 years and a salvage value of zero, and will increase net annual cash flows by $33,229. Click here to view the factor table. What is its approximate internal rate of return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answers to 0 decimal places, e.g. 16\%.)