Jackie Company is considering a capital investment of $140,000 in new equipment, which is expected to have a useful life of 4 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 $10,000 and $45,000, respectively. Jackie Co. requires either a 10% rate of return, or a payback period of 3 years. Instructions: Compute the (a) annual rate of return, (b) cash payback period, (c) net present value, (d) profitability index, and (e) internal rate of return. Show all computations. State whether the project should be accepted or rejected for each of the five capital budgeting techniques. Must show work to receive full credit. Present Value of a Series of Future Payments Periods 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 13% 0.990 0.98 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 21.970 1.942 1.914 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.975 5 4.853 4.714 4.580 4.452 4.330 4.212 4.100 3.993 3.89 3.791 3.696 3.605 3.517 (a) Annual Rate of Return (b) Cash Payback Period- (c) Net Present Value- (d) Profitability Index - (e) Internal Rate of Return Version B Page 5