Coronado Company is considering a capital investment of $180,000 in additional productive facilities. The new machinery is expected to have a useful life of five 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 $19,800 and $60,000, respectively. Coronado has a 12% cost of capital rate, which is also the minimum acceptable rate of return on the investment.

Calculate (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure.

Part 2) Using the fiscounted cash flow technique, calculate the net present value.

Coronado Company is considering a capital investment of $180,000 in additional productive facilities. The new machinery is expected to have a useful life of five 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 $19,800 and $60,000, respectively, Coronado has a 12% cost of capital rate, which is also the minimum acceptable rate of return on the investment. Calculate (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure. (Round cash poyback period to 1 decimal place, es. 15.1 and annual rate of retuit to 2 decimal places, es. 15.12\%.) eTextbook and Media Using the discounted cash flow technique, calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg. -45 or parentheses es. (45). For calculation purposes, use 5 decimal ploces as displayed in the foctor table provided, es. 1.25124. Round present volue answer to 0 decimal places, es. 125.) Clickhere to view the factor table