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Cooper-Lybrande Industries is considering an upgrade of one of its custom machines. The upgrade will require an inner 5.000. The apa only effective for 3 years and is estimated to produce the following net annual cash flows: Year Cash Flow 1 $ 22,000 2 24,000 28,000 $ 74,000 3 The equipment's salvage value is zero. Ken uses straight-irve depreciation. Ken will not accept any ement with a cash pastack proto Ken's required rate of return is 10%. REQUIRED: a. Compute the equipment's payback period. Is the equipment investment desirable? Explain why or why not SHOW ALL COMPUUTOS b. Compute the net present value of the equipment investment. Does your acceptance or rejection of the project you can According to the results of the net present value method? Discuss clearly SHOW ALL COMPUTATIONS Use the following table to assist you: PV of an Annuity of 1 at 15% Present Value of 1 at 15% 870 1.626 2283 Year 1 2 3 140K .870 .756 .658 W/T-F10 (PC) or ALTOFN+F10 (Mac) Arial Question Completion Status: QUESTION 2 Discuss the following techniques) and/or method by addressing the following: a. What is this technique and/or method? What is the equation, if there is one? b. Specifically what does this technique and/or method measure? What is the purpose of this actrica de AL 14p REQUIRED: (1) Internal Rate of Return (2) Net Present Value har press ALT+F10 (PC) or ALT+FN+F10 (Mac). Arial