Calculate NPV, present value ratio, and payback Cowboy Recording Studio is considering the investment of $140,000 in a new recording equipment. It is estimated that the new equipment will generate additional cash flow of $21,000 per year for each year of its 12-year life and will have a salvage value of $15,000 at the end of its life. Cowboy's financial managers estimate that the firm's cost of capital is 12%. Problem 16.33 LO 16-7, 16-9 Required: a. Calculate the net present value of the investment. b. Calculate the present value ratio of the investment. Part 2 Managerial Accounting c. What is the internal rate of return of this investment, relative to the cost of capital? d. Calculate the payback period of the investment