Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company

Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $$1,250,000.$ The equipment has an estimated life of eight years and no residual value. It is expected to provide yearly net cash flows of $$312,500.$ The company's minimum desired rate of return for net present value analysis is $12\%.$

Present Value of an Annuity of $$1$ at Compound Interest

$\backslash$table$[[$Year$,6\%,10\%,12\%,15\%,20\%$