a.

b.

Rihanna Company is considering purchasing new equipment for $333,700. It is expected that the equipment will produce net annual cash flows of $47,000 over its 10-year useful life. Annual depreciation will be $33,370. Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $208,175, net annual cash flows $37,500, and present value factor of cash inflows for 10 years is 5.89 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value $ The investment 4 be made