answer both questions..

Cash Payback Period, Net Present Value Method, and Analysis

GWH Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows:

Year	Primitive Camping		Lakeside Fishing
1	$132,000		$110,000
2	108,000		130,000
3	93,000		89,000
4	84,000		62,000
5	27,000		53,000
Total	$444,000		$444,000

Present Value of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	0.890	0.826	0.797	0.756	0.694
3	0.840	0.751	0.712	0.658	0.579
4	0.792	0.683	0.636	0.572	0.482
5	0.747	0.621	0.567	0.497	0.402
6	0.705	0.564	0.507	0.432	0.335
7	0.665	0.513	0.452	0.376	0.279
8	0.627	0.467	0.404	0.327	0.233
9	0.592	0.424	0.361	0.284	0.194
10	0.558	0.386	0.322	0.247	0.162

Each product requires an investment of $240,000. A rate of 15% has been selected for the net present value analysis.

1. Compute the net present value. Use the present value of $1 table presented above. If required, use the minus sign to indicate a negative net present value.

	Primitive Camping		Lakeside Fishing
Present value of net cash flow total	$fill in the blank 3		$fill in the blank 4
Amount to be invested	fill in the blank 5		fill in the blank 6
Net present value	$fill in the blank 7		$fill in the blank 8

Average Rate of ReturnCost Savings

2. Sager Industries is considering an investment in equipment that will replace direct labor. The equipment has a cost of $103,000 with a $9,000 residual value and a five-year life. The equipment will replace three employees who have average total wages of $35,480 per year. In addition, the equipment will have operating and energy costs of $9,960 per year.

Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. __________%