Averege Rate of Peturn, Cean Paybock Foniod, Nat Pretent Vatue Motbod for a Service Company Spanish Peaks Pailrood tne. is consdering acquiring equipment at a cost of 51,250,000, the equipment has an estimated ife of echt wars and no residuat value. It is expected to provide yerly net cash flows of $312,500. The compeny's minimum denired rate of return for net present vatue analysis is 120% Compute the following: a. The average rate of retum, giving effect to straight:ilne deprecation on the imestment. a. The avierage rate of reburn, oling effoct to strajght-ine depreciation on the inyestinent. b. The cosh peybock seriod