QUESTION Pet Mario & Sons in considering an upgrade of one of the major expert components. The rate will require an art of $14.000 The code is only effective for years in estimated to produce the following net and cash flow Cash Flow $ 12,000 4000 40.000 $106.000 The equitment's salvage value is zero Konstraight line depreciation Kon will not accept any equipment with cash paytuck period over 2 years are reared rute of retum 10% REQUIRED a. Compute the equipment payback period is the equipment irrement desirable? Explain why or why not SHOW ALL COMPUTATIONS b. Compute the represent value of the equipment investment Does your acceptance or rejection of the project you widicated in a shove chargo? According to the powers of the present value method is clearly. SHOW ALL COMPUTATIONS Use the following table to assist your Present Value Year o 1 al 15% 1 870 2 756 658 For the toolbar, press ALT F10PG) or ALT.FN F10 Mac B 1 WS Paragraph Ar PV of an Annuity of 1 at 15% 870 1.626 2 283 I. lils XO Q A 14p 55 D EB RE 3. 1 * 12 XX, 2. The +]