at 15: Chapter 22 EOC problems 10-18 Problem 22-13 A firm, whose cost of capital is 10 percent, may acquire equipment for $113,479 and rent it to someone for a period of five years. Note: Although payment of rent is typically considered to be an annuity due, treat it as an ordinary annuity when completing this problem in a spreadsheet or when using present value factors. a. If the firm charges $36,290 annually to rent the equipment, what are the net present value and the internal rate of return on the investment? Use Appendix D to answer the questions. Use a minus sign to enter negative values, if any, Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number. NPV: $ 24,096 TRR: 18 % Should the firm acquire the equipment? The firm should acquire the equipment as the net present value is positive and the internal rate of return exceeds the firm's cost of capital b. If the equipment has no estimated residual value, what must be the minimum annual rental charge for the firm to earn the required 10 percent on the investment? Use Appendix D to answer the question, Round your answer to the nearest dollar. $ 29,933.79 c. If the firm can sell the equipment at the end of year five for $12,250 and receive annual rent payments of $36,290, what are the net present value and the Internal rate of return on the investment? Use Appendix B and Appendix D to answer the questions. Use a minus sign to enter negative values, if any, Round your answers for the net present value to the nearest dollar and for the internal rate of return to the nearest whole number NPV: $ 31,703.64 IRR: 20 What is the impact of the residual? The residual value increases both the NPV and IRR d. If the $12,250 residual resulted in the firm charging only $33,840 for the rental payments, what is the impact on the investment's net present value? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dolar. Reducing the rental payments and recouping it through the residual value reduces the net present value by s