Cost Payback de Presentahe Analysis and Qualitative Considerations The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment wer cost 368,000. The manager believes that the new investment will result in direct labor savings of $17,000 per year for 10 years Present Value of an Annuity of $1 at Compound Interest Year 69% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.570 0.833 2 1833 1.735 1,090 1.626 1.528 3 2.673 2.487 2.402 2.283 2.100 3.465 3.120 3,037 2.855 2.500 5 4.212 3.791 3.603 3.353 2.991 o 4.91% 4.355 4.111 3.75 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 4.960 4.482 5.335 3.632 9 6.802 5.750 5.320 4.772 4031 10 7.300 6.145 5.650 5.019 4.192 What is the payback period on this project years b. What is the net present value, assuming a 12 rate of return the table provided above. Round to the nearest whole dollar Net present value