a,b,c

Average rate of return, cash payback period, net present value method Great Plains Railroad Inc. is considering acquiring equipment at a cost of $450,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $75,000. The company's minimum desired rate of return for net present value analysis is 10%. Compute the following: The average rate of return, giving effect to straight-line depreciation on the investment. Round whole percent to one decimal place. The cash payback period. The net present value. Use the present value of an annuity of $1 table appearing in this chapter (Exhibit 2). Round to the nearest dollar