Average rate of return, cash payback period, net present value method for a service company The St. Louls to Seattle Railroad is considering acquiring equipment at a cost of $70,000. The equipment has an estimated ife of 10 years and no residual value. It is expected to provide yearly net cash fows of $35,000. 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 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. b. The cash parback poriod. c. The net present value. Use the above table of the present value of an annuty of \$1. Round to the nearest dollar. If required, use a minus sign to indicate negative net present value for current grading purpose. Present value of annual net cash flows 3 Amount to be invested Net prevent value