Average Rate of Return, Cash Payoack Period, Net Present Value Method for a Service Company 5panish Peaks Railfoad Inc. is comsidering acquiring equipment at a cost of $180,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearty net eash flows of $45,000. The company's minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interast Compute the following: a. The average rate of retum, giving effect to straight-line depreciation on the investment, If required, round your answer to one decimal piace. \%) b. The cash payback period. c. The net present value, Use the above table of the present valive of an annuicy of $1. Round to the nearest dollar. If required, use a minus sign to indicate negative ne present value for current grading purpose. Compute the following: a. The overage 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 annulty of $1. Round to the nearest doliac, If recuired, use a minus sign to indicate ne