C) Annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.)

Annual rate of return

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Sarasota Growth Farms, a farming cooperative, is considering purchasing a tractor for $563,170. The machine has a 10 -year life and an estimated salvage value of $51,000. Delivery costs and set-up charges will be $13,600 and $430, respectively. Sarasota Growth uses straight-line depreciation and has a required rate of return of 9%. Sarasota Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $430. Fuel is $60 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766. Click here to view PV tables. For the new tractor, compute the: (a) Your answer has been saved. See score details after the due date. Cash payback period. (Round answer to 1 decimal places, e.g. 15.2.) Cash payback period years Attempts: 1 of 1 used (b) Net present value. (Round factor values to 5 decimal places, e.g. 15.11212. Round Intermediate calculations and final answer to 0 decimal places, e.g. 5,275.) Net present value $