-- Average Rate of Retum, Cash Payback period, Net Present Value Method -Coastal Railroad Inc. is considering acquiring equipment at a cost of $145,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $29,000. The company's minimum desired rate of retum fornet present value analysis is 155 Present Value of an Annuity of $1 at Compound Interest Year 109 14 20% 0.943 0.900 0.893 2 1.736 1.690 1.52 3 2673 2487 2.402 2.106 4 3. 170 25 4212 3.791 3.605 3.353 2.99 5 4.912 4.355 3.78 3.326 5.52 4.68 4.564 4160 3.605 6210 5 7 9 5.802 4.772 4031 5.759 6.145 10 5.650 5.019 4.192 Compute the following The average rate ofretum, in the annual earningsresultatenet cows there on the ment If required, round your answer to domate b. The capax period The represent value the bovetate of the tant value of any of 51. Round to the nearest der if required, use a minus sign to indicate event present value for current grading purpose Present value of annu net cows 72,722 X Les amount to be invested $145.000 5 4212 3.791 3.605 2.99 6 4.917 4355 3.785 3.325 7 4.868 4.564 4160 3.605 8 6.210 5335 4.968 4.487 9 6.802 5.759 4722 4,031 10 7.350 6.145 5.650 5.019 Compute the following: .. The average rate of retum, assuming the annual comings are equal to the net cash flows less the annual depreciation expense on the equipment. If required, round your answer to one decimal place b. The cash payback period c. The net present value. Use the above table of the present value of an annuity of 51. Round to the nearest dollar. If required, use a minus sign to indicate negative net present wue" for current grading purpose Present value of annual net cash flows 72,772 X Income Less amount to be invested 145,000 Net present value 72,228 X Divide the time were income by the average investment Net cash flow is the annual depreciation expense equal average annual core Investment cost divided by two equal average Investment b. Divide the amount to be invested by the annual cash flow Subtract the cost from the present of the cashow use the present value of an annuity factor for 10 perts at 15%