Alamaining met 45 mesconde Quotion Completion Status: P O WORDS POWERED BY TINY QUESTION 2 20 points Ken's Diner is considering a new project requiring an equipment investment of $19,500. The project will last for 3 years and is estimated to produce the following net annual cash flows: Save Ana Year 1 2 3 Cash Flow $ 7,000 9,000 13.000 $29.000 The equipment's salvage value is zero. Ken uses straight-line depreciation. Ken will not accept any equipment with a cash payback period over 2 years. Ker's required rate of return is 15% REQUIRED: a. Compute the equipment's payback period. Is the equipment investment desirable? Explain why or why not. SHOW ALL COMPUTATIONS. b. Compute the not present value of the equipment investment. Does your acceptance or rejection of the project you indicated in (a) above change? According to the results of the net present value method? Discuss clearly. SHOW ALL COMPUTATIONS. Use the following table to assist you: Present Value Year of 1 at 8% 1 .926 2 857 3 .793 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIVS Paragraph PV of an Annuity ofit at 8% 1.926 1.783 2.577 v Arial 14px PE A 2 IX X 5 EEE Save and Submit to save and submit. Click Save All Answers to save all answers, Save All Answers Buve and MacBook Air