K-PRACTICE AID SAGINAW VALLEY STATE UNIVERSITY PartI Capital Budgeting. Student Government is considering the purchase of a new Popcorn Cart for $7,000 with four (4) years of useful life. The cart is expected to generate $2,500 per year in cash flows. The treasurer suggests using a 12% rate for the cost of capital. I. The net present value (12%) for this project is: 2. The internal rate of return (rounded to the nearest rate) is: 3. The accountant's (unadjusted) rate (rounded to the nearest rate) is: 4. The payback period is approximately: 5. The profitability index is: Present value of S1 Present value of an annuity of $1 n | 10% | 12% | 15% | 16% | 18%| 10% | 12% | 15% | 16% | 18% 1 909 892 870 862 847 909 893870 862 847 2 826 797 756743 718 1.736 1.690 1.626 1.605 1.566 3 751 711 658 641 609 2.487 2.402 2.283 2246 2.174 4 .683635 572 .552 516 3.170 3.037 2.855 2.798 2.690 5 .621567 497 476437 3.791 3.605 3.352 3.274 3.127