Gantner Company is considering a capital investment of $300,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $27,000 and $87,000, respectively. Gantner has a 12% cost of capital rate, which is the minimum acceptable rate of return on the investment. TABLE 4 Present Value of an Annuity of 1 (11) Payments 4% 5% 6% 1 .96154 .95238 11 23456789012345 1.88609 7% 0.93458 1.80802 8% 9% 10% 11% 12% 15% 2.62432 16 17 18 19 20 .94340 1.85941 1.83339 2.77509 2.72325 2.67301 3.62990 3.54595 3.46511 4.45182 4.32948 4.21236 5.24214 5.07569 4.91732 6.00205 5.78637 5.58238 6.73274 6.46321 6.20979 7.43533 7.10782 6.80169 8.11090 7.72173 7.36009 8.76048 8.30641 7.88687 9.38507 8.86325 8.38384 9.98565 9.39357 8.85268 10.56312 9.89864 9.29498 11.11839 10.37966 9.71225 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797. 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 13.59033 12.46221 11.46992 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 .92593 .91743 .90909 .90090 .89286 .86957 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 8.35765 7.90378 7.48690 7.10336 6.74987 8.74547 8.24424 7.78615 7.36669 6.98187 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 6.42355 5.58315 6.62817 5.72448 Compute the annual rate of return. Annual rate of return % Compute the cash payback period on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 15.25.) Cash payback period years Using the discounted cash flow technique, compute the net present value. (Use the above table.) (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal places, eg. 5,275) Net present value