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Santana Rey is considering the purchase of equipment for Business Solutions that would aliow 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 aliow the company to add a new product to its computer furniture line. The equipment is expected to cost $338,640 and to have a six-year life and no salvage value. The equipment is expected to generate income of $14,039 and net cash fow of $73,253 in each year of its six-year life. Santana requires an 9% return on all investments. (PV of \$1, FV of \$1. PVA of \$1, and FVA of \$1) Note: Use appropriate factor(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 retum 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 Santane requires investments to have at least an 9% internal rote of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute the payback period for this equipment. Compute the net present value for this equipment. Note: Negative values must be entered as a negative number: 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 9% internal rate of return, should she invest in this equipment? E. If Santana requires investments to have payback peciods of four years or less, should she invest in this equipenent? If Sariana requires investments to have at least an 9% htemal rate of rabim, should she ifvest in this equigment? Table B.1* Trement Value ot 1 a+111+an - Wied ay cenvule the jurearnt te Whe dectars of a=12 ondi i 52 Tahle B.2t Future Valoe of 1 f=(1+i =111+0+W f=16+i+116

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