a. It is computed as the average annual after-tax net income b. It does not consider the time value of money. c. The higher the return, the better the investment d. It considers the timing of after-tax cash flows. frm m the Questions 12 through 14 are based on the following information. Tam Co. is negotiating to purchase equipment that would cost $100,000, with the expectation that $20,000 per estimated useful life is 10 years, with no residual value, apd-would be depreciated by the straight-ime method Tam's predetermined minimum desired rate of return is 12 O/Present value of an annuity of 1 at 12% for 10 periods is.5:65)Present value of l due in 10 periods at l 2% is .322. 12. Net present value is a. $5,760 b. $6,440 c. $12,200 d. $13,000 1lo 13. Payback period is a. 4.0 years b. 4.4 years c. 4.5 years d. 5.0 years 14. Accrual accounting rate of return a. 30% b. 20% c. 12% d. 10% 15, If net present value for a particular project is necrat