BE12.2

RE12.1 (LO 1), AP Rihanna Company is considering purchasing new equipment for $450,000. It is Cpected that the equipment will produce net annual cash flows of $60,000 over its 10-year useful life. Argual depreciation will be $45,000. Compute the cash payback period. Compute the cash payback period for a capital investment. RE122 (LO 2), AN Hsung Company accumulates the following data concerning a proposed capital invest- ment: cash cost $215,000, net annual cash flows $40,000, and present value factor of cash inflows for 10 years 565 (rounded). Determine the net present value, and indicate whether the ivestment should be made. Compute net present value of an investment. RE12.3 (LO 2), AP Thunder Corporation, an amusement park, is considerino a canital innetment in a