Grouper Company is considering a capital investment of $$370,440$ in additional productive facilities. The new machinery is expected to have a useful life of $5$ years with no salvage value. Depreciation is computed by the straight$-$line method. During the life of the investment, annual net income and cash flows are expected to be $$34,000$ and $$108,000,$ respectively. Grouper has a $12\%$ cost of capital rate, which is the minimum acceptable rate of return on the investment.

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Compute the annual rate of return. $($Round answer to $1$ decimal place, e$.$g$.15\mathrm{.}5.)$

Annual rate of return $$

Compute the cash payback period on the proposed capital expenditure. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

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, e$.$g$.1\mathrm{.}25124$ and final answer to O decimal places, e$.$g$.5,275.)$

Net present value

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