CSLO-C12-AE12-10

Vilas Company is considering a capital investment of $216 200 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 $10 810 and $47 000 respectively las has a 12% cost of capital rate, which s the required rate o return on the n est ent. Click here to view PVtable Compute the cash payback period. (Round answer to 1 decimal place,es. 10.5) Cash payback period years Compute the annual rate of return on the proposed capital expenditure. Round answer to 2 decimal places, eg, 10.52%) Annual rate of return 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 number es.-45 or parenthesese.(45). Round answer for present value to O decimal places, es 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value