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Prorohorn Company is considering a capital imestment of $430,280 in addibond productive facitities The newrisct inery is. expected to have a uselul life of 5

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Prorohorn Company is considering a capital imestment of $430,280 in addibond productive facitities The newrisct inery is. expected to have a uselul life of 5 years with no salvage value. Depreciation is cor putted by the striveht lline method During the hife of the investment, anwual net income and cashficis are expected to be $40,000 and $124,000 respectively. Pronghorn has a 1295 cost of capital rate. Which is the minimum acceptable rate of return on the irnestment. (a) Your answer has been samed, See score detals after the due date. Compute the annial rote of retum (Rocnd ortiwco to f decinal place, es 15.5 ) Annuil rate of return Compute the cash poyback penlod on the proposed capital bopenciture Houndonwer fo 2 decimal ploces eg 1525 . Cashparback period years (D) iof cuptal rate, whochis the mirinsin acceatable rate of retuen on the irwestment. (a) Your arwar has been saved sen sope details a tor the diyedate. Annuain rate of retaim Cashrovposin penod Atternope 1 of I vient (D)

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