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Average rate of return, cash payback period, net present value method for a service company The St . Louis to Seattle Railroad is considering acquiring

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Average rate of return, cash payback period, net present value method for a service company
The St. Louis to Seattle Railroad is considering acquiring equipment at a cost of $160,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $40,000. The company's minimum desired rate of return for net present value analysis is 12%.
\table[[Present Value of an Annuity of $1 at Compound Interest],[Year,6%,10%,12%,15%,20%
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