Problem 1 Average rate of return Determine the average rate of return for a project that is estimated to yield total income of $456,300 over five years, has a cost of $638,800, and has a $63,200 residual value. Round to the nearest whole percentage. Problem 2 Cash payback period A project has estimated annual net cash flows of $39,000. It is estimated to cost $249,600. Determine the cash payback period. If required, round your answer to one decimal place. Problem 3 Net present value A project has estimated annual net cash flows of $15,000 for two years and is estimated to cost $37,500. Assume a minimum acceptable rate of return of 20%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 0.833 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 10 7.360 6.145 5.650 5.019 5.328 4.772 4.031 4.192 Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value.