gagenow.com/l/takeAssignment/takeAssignment Main.do?invoker takeAssignmentSessionLocator &inprogress-false bar. Manage favorites.new Average ute uf Retum, Cash Payback Penot Net Present Value Methol For a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $136,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cath flows of $60,000. The company's minimum desired rate of return for net present value analysts i 15 Present Value of an Annuity of $1 at Compound Interest War 6 100 12% 15% 20% $ 0.943 0.909 0.93 0.170 0.833 2 1.833 1.736 1.490 1.436 1.528 3 2.673 2.487 2:402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.509 S 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3326 7 5.582 4.868 4.564 4.160 3.605 " 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.320 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following a. The average rate of return, giving effect to straight-line depreciatain on the investment. If required, round your answer to one dechal place b. The cash payback period. The net present value. Use the above table of the present value of an annuity of $1. Round to the nearest dular. If required, use a minus sign to indicate negative net present value for current grading purpose. Present value of annual net cash flows Previous Next