Question 31 Morgan Company is considering a capital investment of $179,800 in additional productive facilities. The new machinery is expected to have a useful life of five years with no salvage value Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $19,778 and 562,000, respectively. Morgan has a 12% cost of capital rate, which is also the minimum acceptable rate of return on the investment Calculate (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure (Round cash payback period to 1 decimal place, 1.9. 15.1 and annual rate of return to 2 decimal places, e.g. 15.12%) (1) Cash payback period years (2) Annual rate of return Using the discounted cash flow technique, calculate the net present value. (If the net present value is negative, use ether a negative sign preceding the number eg. 45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124. Round present value answer to decimal places . 125.) Click here to view. PV table Net present value