Magna Inc. is considering moderniring its production facility by investing in new equipment and setting the old equipment. The following information has been collected on this investment. OM Equipment New Equipment Cost $50,560 Cost $39,840 Accumulated depreciation $40.900 Estimated useful Remaining Me 8 years Salvage value in 8 years 14.592 Current salvage value $10,100 Annual cash operating costs $29.000 Salvage value in 8 years 10 Annual cash operating costs $35,300 Depreciation is $10,070 per year for the old gipment. The straight-ane depreciation method would be used for the new equipment over a year period with salvage value $4,592 Determine the cash payback period (ignore income taxes). (Round answer to 3 decimal places, ap. 15.278.) Cash payback period Years Calculate the annual rate of return (Round answer to 2 decimal places, 1825) Annual rate of return Calculate the net present value assuming a 1966 rate of return (gnore income taxes). (If the nel present value is negative, use either a negative sign preceding the number. -45 or parentheses (45). For calculation purposes, use I decimal places as displayed in the factor table provided .. 1.25124 and final answer to decimal places, ag. 8,278.) Click here to view PV table. Net present value si Should the company purchase the new equipment? Magna Inc. is considering modernizing its production facility by Investing in new equipment and selling the old equipment. The following information has been collected on this investment Old Equipment New Equipment Cost $80,560 Cost $39,840 Accumulated depreciation $40,900 Estimated useful life 8 years Remaining life 8 years Salvage value in 8 years $4,592 Current salvage value $10,100 Annual cash operating costs $29,900 Salvage value in 8 years $0 Annual cash operating costs $35,300 Depreciation is $10,070 per year for the old equipment. The straight-line depreciation method would be used for the new equipment over an eight-year period with salvage value $4,592. Determine the cash payback period (Ignore income taxes). (Round answer to 3 decimal places, e... 15.275.) Cash payback period years Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.) Annual rate of return Calculate the net present value assuming a 17% rate of return (Ignore income taxes). (Ir the net present value is negative, use either a negative sign preceding the number e.g.-45 or parent calculation purposes, use 5 decimal places as displayed in the factor table provided, .g. 1.25124 and final answer to decimal places, e.g. 5,275.) Click here to view PV table. Net present value Should the company purchase the new equipment? Quest