Martinez Company is considering a capital investment of $365,400 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $31,000 and $71,000, respectively. Martinez requires a 10% return on all new investments Present Value of an Annuity of 1 11% Period 8% 9% 10% 12% 15% 8 5.74664 5.53482 5,33493 5.14612 4.96764 4,48732 v Click here to view PV tables tre av by (a) stre hay by Compute each of the following: (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round cash payback period, profitability index and annual rate of return to 2 decimal places, eg. 15.25 and other answers to decimal places, es 5,275) 1. Cash payback period years Compute each of the following: (Round cash payback period, profitability index and annual rate of return to 2 decimal places, e.g. 15.25.) years 1. Cash payback period. 2. Net present value. 3. Profitability index. 4. Internal rate of retum. 5. Annual rate of return LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Indicate whether the investment should be accepted or rejected. Investment should be TABLE 1 Future Value of 1 (n) Periods 0 1 2 3 4 S 6 7 8 9 10 5% 1.00000 1.00000 1.04000 1.05000 1.08160 1.10250 1.12486 1.15763 1.16986 1.21551 1.21665 1.27628 1.26532 1.34010 1.31593 1.40710 1.36857 1.47746 1.42331 1.55133 1.48024 1.62889 1.53945 1.71034 1.60103 1.79586 1.66507 1.88565 1.73168 1.97993 1.80094 2.07893 1.87298 2.18287 1.94790 2.29202 2.02582 2.40662 2.10685 2.52695 2.19112 2.65330 6% 79 1.00000 1.00000 1.06000 1.07000 1.12360 1.14490 1.19102 1.22504 1.26248 1.31080 1.33823 1.40255 1.41852 1.50073 1.50363 1.60578 1.59385 1.71819 1.68948 1.83846 1.79085 1.96715 1.89830 2.10485 2.01220 2.25219 2.13293 2.40985 2.26090 2.57853 2.39656 2.75903 2.54035 2.95216 2.69277 3.15882 2.85434 3.37993 3.02560 3,61653 3.20714 3.86968 8% 996 10% 119 1.00000 1.00000 1.00000 1.00000 1.08000 1.09000 1.10000 1.11000 1.16640 1.18810 1.21000 1.23210 1.25971 1.29503 133100 1.36763 1.36049 1.41158 1.46410 1.51807 1.46933 1.53862 1.61051 1.68506 1.58687 1.67710 1.77156 1.87041 1.71382 1.82804 1.948722.07616 1.85093 1.99256 2.14359230454 1.99900 2.17189 2.35795 2.55803 2.15892 2.367362.59374 2.83942 2.33164 2.58043 2.85312 3.15176 2.51817 2.81267 3.13843 3.49845 2.71962 3.06581 3.45227 3.88328 2.93719 3.34173 3.79750 4.31044 3.17217 3.64248 4.17725 4.78459 3.42594 3.97031 4.59497 531089 3.70002 4.32763 5.05447 5.89509 3.99602 4.71712 5.55992 6.54355 4.31570 5.14166 6.11591 7.26334 4.66096 5.60441 6,72750 8.06231 129 1.00000 1.12000 1.25440 1.40493 1.57352 1.76234 1.97382 2.21068 2.47596 2.77308 3.10585 3.47855 3.89598 4.36349 4.88711 5.47357 6.13039 6.86604 7,68997 8.61276 9.64629 159 1.00000 1. 15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.13706 9.35762 10.76126 1237545 14.23177 16.36654 11 12 13 14 15 16 17 18 19 20 000 8% TABLE 2 Future Value of an Annuity of 1 (n) Payments 496 5% 6% 796 9% 105 115 125 15% 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 2.04000 2,05000 2.06000 2.0700 2.08000 2.09000 2.10000 2211000 2.12000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 334210 3.37440 3.47250 4 4.24646 4.31013 4.37462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5,63709 9.7507 5.86660 5.98471 6.10510 6.22780635285 6.74238 6 6.63298 6.80191 6.97532 7.1533 733592 7.52334 7.71561 7.91256 811519 8.75374 7 7.89829 8.14201 8,39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12 29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 1477566 16,78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 1754874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19:56143 2065458 24.34928 12 15.02581 15.91713 16.86994 17.8885 18.97713 20.14072 21.384282271319 24.13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24,52221 26.21164 28.02911 34.35192 14 18.29191 19,59863 21.01507 22.5505 24.21492 26,01919 27.97498 30.09492 32.39260 40 50471 15 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 3440536 37.27972 47.58041 16 21.82453 23.65749 25.67253 27.8881 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 17 23.69751 25.84037 28.21288 30.8402 33.75023 36.97351 40.34470 4450084 48.68367 65.07509 18 25,64541 28.13238 30.90565 33.999037.45024 41.30134 45.59917 50.39593 55.7497275.83636 19 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 8821181 20 29.77808 33.06595 36.78559 40,9955 45.76196 51.16012 57 27500 64.20283 72.05244 102.44358 O99 TABLE 3 Present Value of 1 (n) Periods 1 2 3 4 5 6 9 10 11 12 13 14 15 16 17 18 19 20 4% 96154 92456 88900 85480 82193 79031 75992 73069 .70259 .67556 64958 .62460 60057 57748 55526 53391 51337 49363 47464 45639 5% 95238 .90703 86384 .82270 178353 .74622 71068 67684 64461 61391 58468 55684 53032 50507 48102 45811 43630 41552 39573 37689 6% 94340 89000 83962 79209 .74726 70496 .66506 .62741 59190 55839 52679 49697 46884 44230 .41727 39365 37136 35034 33051 31180 796 0.93458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 0.33873 0.31657 0.29586 0.27615 0.25842 8% 92593 85734 .79383 73503 68058 63017 58349 54027 -50025 46319 42888 39711 36770 34046 31524 29189 27027 25025 23171 21455 9% 91743 84168 .77218 70843 .64993 59627 54703 50187 46043 42241 38753 35554 32618 29925 .27454 25187 23107 21199 .19449 .17843 10% 90909 -82645 .75132 68301 .62092 .56447 51316 46651 .42410 38554 35049 31863 28966 26333 .23939 21763 -19785 17986 .16351 .14864 11% 90090 81162 73119 65873 59345 53464 48166 43393 39092 35218 31728 28584 25751 23199 .20900 18829 .16963 -15282 .13768 .12403 12% 89286 79719 .71178 .63552 56743 50663 45235 40388 36061 32197 28748 25668 22917 20462 .18270 .16312 14564 13004 11611 10367 15% 86957 75614 65752 57175 49718 43233 37594 32690 28426 24719 21494 .18691 16253 14133 ..12289 10687 09293 08081 07027 06110 TABLE4 Present Value of an Annuity of 1 (7) Payments 4% 5% 6% 7% 1 96154 95238 94340 0.93458 2 1.88609 1.85941 1.83339 1.80802 3 2.77509 2.72325 267301 262432 4 3.62990 3.54595 3.46511 3.38721 5 4,45182 4.32948 4.21236 4.10020 6 5.24214 5.07569 491732 4.76654 7 6.00205 5.78637 5.58238 5.38929 8 6,73274 6.46321 6.20979 5.97130 9 7.43533 7.10782 6.80169 6.51523 10 8.11090 7.72173 7.36009 7.02358 11 8.76048 8.30641 7.88687 7.49867 12 9.38507 8.86325 8.38384 7.94269 13 9.98565 9.39357 8.85268 8.35765 14 10.56312 9.89864 9.29498 8.74547 15 11.11839 10.37966 9.71225 9.10791 16 11.65230 10.83777 10.10590 9.44665 17 12. 16567 11.27407 10.47726 9.76322 18 12.65930 11.68959 10.82760 10.05909 19 13.13394 1208532 11.15812 10.33560 20 13.59033 12.46221 11.46992 10.59401 8% 92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 9% 91743 1.75911 253130 3.23972 3.88965 4.48592 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95012 9.12855 10% 90909 1.73554 2.48685 3.16986 3.79079 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 119 90090 1.71252 2.44371 3.10245 3.69590 4.23054 4.71220 5.14612 5.53705 5.88923 6.20652 6.49236 6.74987 6.98187 7.19087 7.37916 7.54879 7.70162 7.83929 7.96333 12% 15% 89286 86957 1,69005 1.62571 2.40183 2.28323 3.03735 2.85498 3.60478 3.35216 4.11141 3.78448 4.56376 4.16042 4.96764 4.48732 532825 4.77158 5,65022501877 5.93770 523371 6.19437 5.42002 6.42255 5.58315 6.62817 5.72448 6.81086 5.84737 697399595424 7.11963 6.04716 7.24967 6,12797 7.36578 6. 19823 7.46944 6.25933