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 $136,000. The equipment has an estimated life of 10 years and no residual value. It is company's minimum desired rate of return for net present value analysis is 15% Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2. 1.833 1.736 1.690 1.626 1.528 3 2.623 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: Thi average rate of return, giving effect to straight-line depreciation on the investment. It required, round your answer to one decimal place 3090 b. The cash payback period years c. The net present value. Use the above table of the present value of an annuity of $1. Round to the nearest dollar. If required, use a minus sign to indicate negative net Present value of annual net cash flows X Amount to be invested Net present value 3 et Present Value Method for a Service Company ring equipment at a cost of $136,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash nows of $34,000. The et present value analysis is 15% pound Interest 15% 20% 0.833 0.870 1.626 1.528 2.283 2.855 2.106 2.589 2.991 3.353 3.785 3.326 4.160 3.605 4.487 3.837 4.772 4.031 4.192 5.019 to straight-line depreciation on the investment. It required, round your answer to one decimal place: le of the present value of an annuity of S1. Round to the nearest dollar. If required, use a minus sign to indicate negative net present value for current grading purpose. x X