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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture

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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $327,600 and to have a sixyear life and no salvage value. The equipment is expected to generate income of $13,639 and net cash flow of $62.494 in each year of its six-year life. Santana requires an 5% return on all investments. (PV of $1. EV of $1. PVA of \$1. and EVA of \$1) (Use appropriate foctor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1.c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 5% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Compute the payback period for this equipment. Complete this question by entering your answers in the tabs below. Compute the net present value for this equipment. (Negative values must be entered as a negative Complete this question by entering your answers in the tabs below. Compute internal rate of return for this equipment. Complete this question by entering your answers in the tabs below. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 5% internal rate of return, should she invest in this equipment? 2. If Santana tequires investments to have payback periods of four years or less, should she invest in this equipment? 3. It Santans requires investments to have at least an 5% internal rate of return, should she invest in this equipment

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