Present Value of an Annuity of 31 at Compeund interest b. The eash-psyback prrod. = vears Present value of annual net cash flows Nownt to be invested Net presient walise Check My Waksi Previcus Wost 2 Average Rate of Rietiom, Cash Payback Heriod, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc, is considering ocquiring equipment at a cost of $464,000, The equipment has an estimated life of 10 years and no reicusi value. It is expected to provide yearly net cash foys of $58,000. The company's minimum desired rate of return for net present valiae analysis is 12%. Present Value of an Annuity of $1 at Compound Interest. Compute the followings a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one-decimal place. Compute the following: a. The averaee rate of return, giving effect to straight-line depresiation on the inveatment. If required, round your answer to one decimal olace. e. b. The cash payback period. 1 years c. The net present valye. Use the above table of the present value of an annuty of $1. Round to the nearest daliar, If required, use a minus sign to indicate Begstive net present yalue for current grading purpose. Feedtack " chack My Work a. Dlvide the estimated average annual income by the average investment: Net cash flow less the annual depreciation expense equals average annual income. Inventment cost divided by two equals average investment. h. Dude the ampunt to be inyested by the annual net cash inflow