cash payback, ARR, Net present value
CALCULATOR PRINTER VERSION 4 BACK Exercise 24-10 Vilas Company is considering a capital investment of $190,500 in additional productive facilities. The new machinery is expected to have a useful We of 5 years with salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $15,4 $49,430, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Compute the cash payback period. (Round answer to 1 decimal place, c.9. 10.5.) Cash payback period years Compute the annual rate of return on the proposed capital expenditure. (Round answer to deal place, .g. 20.5.) Annual rate of return % LINK TO TEXT LINK TO TEXT Using the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a negative sign preceding the numbe e.g. -45 or parentheses e... (45). Round answer for present value to o decimal places,.. 125.) Net present value ess Decision Making. Se Help System Announcements (1 Unread) CALCULATOR PRINTER VERSION BACK NEXT ERINE Vilas Company is considering a capital investment of $190,500 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $15,410 and $49,430, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the Investment Click here to view the factor table, (For calculation purposes, use 5 decimal places as displayed in the factor table provided) Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years Compute the annual rate of return on the proposed conical expenditure (Round answer to i declinare. 20.8.) Annual rate of retum LINK TO TENT LINK TO TEXT Using the discounted coch now technique, compute the net present Value (Ir the net present value is negative wwe either a negative in preceding the number e.g. -45 er parentheses (45), Round answer for present value to decimal places... 125.) Net present value