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annual net income and cash flows are expected to be $ 4 2 , 0 0 0 and $ 1 3 0 , 0 0

annual net income and cash flows are expected to be $42,000 and $130,000, respectively. Sarasota has a 12% cost of capital rate, which is the minimum acceptable rate of return on the investment.
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(a)
Compute the annual rate of return. (Round answer to 1 decimal place, es.15.5.)
Annual rate of return
Compute the cash payback period on the proposed capital expenditure. (Round answer to 2 decimal ploces, eg.15.25.)
Cash payback period vears
(b)
Using the discounted cash flow technique, compute the net present value. (Use the above table.)(Round factor values to 5 decimal places, es.1,25124 and final answer to 0 declmal places, e8.5,275.)
Net present value $
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