Exercise 170 Tom Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage business. He estimates the construction of a state-of-the-art building and the purchase of necessary equipment will cost $840,000. Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of return is 9% (present value factor of 7.1607). Estimated annual net income and cash flows are as follows: Revenue $350,500 Less: Utility cost Supplies Labor $40,000 $8,000 141,000 70,000 38,500 Depreciation Other 297,500 $53,000 Net income For this investment, calculate: Present Value of an Annuity of 1 TABLE 4 5% 95238 4% 7% 800 10% 12% 15% Payments 6% 9% 11% 96154 94340 0.93458 .92593 .91743 90909 90090 89286 86957 1.88609 8594 1.83339 1.80802 1.78326 .75911 1.73554 1.71252 1.69005 1.62571 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.45182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 . 4 82287 12587 46733 3 21923 7 47789 871 32824 54295 71470 24578 90112 34445 55555 56666 357 7 16452 07576 22 73518 13780 74380 39959 16625 39221 71466 15936 91468 91234 44455 56666 67777 40253 26777 69293 52102 53888 17623 02679 6291 31438 0948 74036 789 62327 69698 15126 24905 06360 75495 53366 311 91060 220 71 481 44556 66777 78888 25256 93 99826 17 52457 5066 833 59 63325 16 56615 23508 552 1 0688 45556 67778 88889 87498 68848 74905 8368 2666 20441 330 62727 15925 81368 90724 36861 863 5 52701 45566 77788 89999 9038 7957-52 2325 66649 62 69153 82757 63954 68712 94540 73950 49371 45567 77889 99000 6539 7035 74885 06022 88692 92619 63242 5 8859-0 3376 789 2 45667 78899 00011 6 77921 6 70532 3389 74952 97-23-57 63287 56371 02 06997 37 07417 38383 82 55677 88990 01122 87529 07043 40613 363 22250 05538 25930 331 68861 56539 741 73951 61615 56678 89901 12233 67890 12345 67890 The internal rate of return. (use the above table.) Internal rate of return The cash payback period. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period Click if you would like to Show Work for this question: Open Show Work years