Average Rate of Retum, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Rallroad Inc. is considering acquiring equipment at a cost of $284,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provlde yearly net cash flows of $71,000. The company's minimum desired rate of retum for net present value analysis is 10%. Present Value of an Annulty of $1 at Compound Interest Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. % a. The average rate of return, giving effect to straight-line depreciation on the investment. 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 annuty of $1. Round to the nearest doilar. If required, use a minus sign to indice negative net present value for current grading purpose