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$.15\mathrm{.}5.)$

Annual rate of return

Compute the cash payback period on the proposed capital expenditure. $($Round answer to $2$ decimal ploces, eg$.15\mathrm{.}25.)$

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, e$8.5,275.)$

Net present value $