For discount factors use Exhibit 12B-1 and Exhibit 12B-2. She also expects additional cash expenses amounting to $3,600 per year. The cost of capital is 12%. Assume that there are no income taxes. Required: Download Excel spreadsheet 1. Compute the payback period for the new equipment. Round your answer to two decimal places. years 2. Compute the ARR. Round your answer to two decimal places. % 3. Conceptual Connection: Compute the NPV for the project, using 14% as the IRR. Complete the following statements. a. The NPV is s b. Dr. Gomez purchase the new equipment. c. The response above is based on the fact that the NPV is and than the IRR. indicate a negative NPV. $ What would you now recommend? Dr. Gomez should not buy the equipment