ication) Show Me How Cash Payback Peret, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shechen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $275,000 Themes that the newest wires in direct savings of $60,000 per year for 10 years. Present Value of an Annuity of $1 at Compound Interest Year 969 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1833 1.736 1.690 1.426 1.528 3 2.673 2.487 2.402 2.203 2.106 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 " 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 7.360 4.145 5.650 5.019 4.192 What is the payback period on this project? 4years b. What is the net present value, assuming a 12% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value 389,850 x What else should the manager consider in the analysis Taxes and Maintenance costs Own My Divide the amount to be invested by the annual net cash flow Subtract the set from the present value of the annual net cash flow. Use the present value of an annuity factor for 10 penods at 12% (Refer to the ext Consider all cash flows