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Pina Colada Company is considering a capital investment of $380,800 in additional equipment. The new equipment is expected to have a useful life of 8

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Pina Colada Company is considering a capital investment of $380,800 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 $34,000 and $74,000, respectively. Pina Colada requires a 10% return on all new investments. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 8 5.74664 5.53482 5.33493 5.14612 4.96764 448732 Compute each of the following: (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round cast payback period, profitability index and annual rate of return to 2 decimal places, e.g. 15.25 and other answers to decimal places, es 5.275.) 1. Cash payback period years 2 Net present value 3. Prontability index 4 Internal rate of return 5 Annual rate of return

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