Q9 VA

Sunland Company is considering a capital investment of $208,000 in additional productive facifities. The new machinery is expected to have ausefullife of 5 years with no salvage value. Depreciation is by the straght-line method. During the life of the investment; annuat net income and net annual cash flows are expected to be $15,080 and $52,000, respectively. Sunland has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view PV table. (a) Compute the cash payback period. (Round answer to 1 decimal place, es, 10.5) years Compute the annual rate of return on the proposed capital expenditure (Round onswer to 2 decimal places, 6g10.52% ) Annual rate of ceturn \% (b) preceding the number es. 45 or porentheses es. (45). Round an wer for present volue to 0 decimal places, es. 125 . For calculation putposes. use 5 decimal ploces as displayed in the foctor toble provided) Netpresent value