A company that manufactures recreational pedal boats has approached Mike Cichanowski to make it he would be interested in using Current Designerotomold expertise and equipment to produce some of the pedal boat components. Mike is intrigued by the idea and think it would be an interesting way of complementing the present product line One of Mike's hestations about the proposal is that the pedal boats are a different shape than the kayaks that Current Designs produces. As a result, the company would need to buy an additional rotomeld oven in order to produce the pedal boat components This project clearly involves risks, and Mice wants to make sure that the returns justify the risks. In this case, since this is a new venture. Mike thinks that a 15% discount rate is appropriate to use to evaluate the project As an internat Current Designs, Mike has asked you to prepare an initial evaluation of this proposal. To aid in your analysis, he has provided the following information and assumptions 1 The new rotomoldoven will have a cost of 5301.000. a salvage value of 50, and an 8-year useful life. Straight-line depreciation will be used The projected revenues, costs, and results for each of the years of this project are as follows 2. Sales $204,800 Less: $122.000 Manufacturing costs Depreciation 30.000 Shipping and administrative costs 22.000 180,000 Income before income taxes 24.800 Income tax pense 10.800 Net Income $14.000 Click here to view PV tabi (a) Your Answer Correct Answer Your answer is correct. Compute the annual rate of return (Round answer to 2 decimal places 15.25%) Annual rate of return 9.3 56 eTextbook and Media Attempts 3 of 3 used Using multiple attempts has impacted your score (b) Compute the payback period. (Round answer to 2 decimal places, s 15 25.) Payback period years eTextbook and Media Attempts: 0 of 3 used Submit Answer Savetoriate Using multiple attempts will impact your score 596 score reduction after attempt 2 (C) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above