Payback period=6.2 years

Net present value=$ 20,038

ARR =12.73%

Explanation:

ParticularsAmount

Initial investment(551,500+12,100+400)564,000

Annual cashflows 5*52*(400-50)91,000

a) payback period= 564000/91,000

=6.2 years

b)present value of cashflows =91,000*6.418=584,038

Initial investment=564,000

Net present value=584,038-564,000=20,038

c)Average investment=(564,000 +36,000) /2=300,000

Annual net income=91,000-(564,000-36,000)/10=38,200

Accounting rate of return =38,200/300,000 =12.73%

PLEASE ANSWER THE QUESTION BELOW

what qualitative factors might be helpful in making a final decision?