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Captain Inc. is considering the purchase of new equipment that will automate production and thus reduce labor costs. Captain made the following estimates related to

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Captain Inc. is considering the purchase of new equipment that will automate production and thus reduce labor costs. Captain made the following estimates related to the new (Click the icon to view the information) Present Value of $1 table Present Value of Anulty of S1 table Euture Value of $1.table Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculate (a) not present value, (D) payback period, (e) discounted payback period and (d) internal rate of return a. Net present value. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, XXXX, and use a minun sign or parentheses for a nega rounded to the nearest whole dollar) The net present value is b. Payback period (Round your answer to two decimal places) The payback period in years is c. Discounted payback period (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, XXX%) The discount payback period in years is d. Internal rate of return (Round the late to two decimal places. X.XX%) The internal rate of retum (IRR) is Requirement 2. Compare and contrast the capital budgeting methods in requirement1 Select the characteristics that describe each budgeting method. (If an input field is not used, leave the input fold empty, do not select a label) Net present value Read the requirements Net present value: Internal rate of return: Payback method (without discounting): Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Present Value of $1 table Read the requirements Internal rate of return: Payback method (without discounting): Discounted payback method: ck period, (d - x he nearest w Requirements utive net pres Ees.) 1. Calculate (a) net present value, (b) payback period, (c) discounted payback period, and (d) internal rate of return. 2. Compare and contrast the capital budgeting methods in requirement 1. b the neare Print Done ces, X.XX methods in requirement 1. od. (If an input field is not used, leave the input field empty; do not select a label.) re Value of Data table Rel ative 1 Cost of the equipment $149,000 Reduced annual labor costs $45,000 Estimated life of equipment 10 years Terminal disposal value $0 After-tax cost of capital 12% Tax rate 25% Assume depreciation is calculated on a straight-line basis for tax purposes. Assume all cash flows occur at year-end except for initial investment amounts. N Print Done requireme ut field is

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