Show Me How Calculator Average rate of Return, Cash Payback period, Net Present Value Method B-Coastal Railroad Inc. is considering acquiring equipment at a cost of $120,000. The equipment has an estimated We of 10 years and e analysis 12 expected to provide yearly net cash flows of $60,000. The company's minimum dessed rate of return for ne present real value. It is Present Value of an Annuity of Sial commund interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.528 1626 2.106 3 2.673 2.589 3.465 4.212 4.917 2.991 2.4372 .4022233 3.170 3.037 3.791 3.605 3.353 4.355 4.111 4.100 5.335 4.968 4.487 5.759 5.328 4.772 6.145 5.650 5 .019 3126 3.605 5.582 6.210 6.802 3.837 4.031 4.192 10 7.360 Compute the following: a. The average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment. If required, round your answer to one decimal place b. The cash payback period. Previous Next > 7:21 PM 40 a 8/2/2019 Oreck My Work 2 more Check My Work uses remaining GUDUR Show Me How Calculator 3 2 .673 3.465 4.212 4.917 2.487 2.402 3.170 3.037 3.791 3.605 4.355 4.111 4.868 4.564 5.335 4.968 5.7595.328 6.145 5.650 2.283 2.855 3.353 3.785 4.160 4.487 4.772 .019 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 5.582 6.210 6.802 7.360 10 5 Compute the following: required, d. The average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment round your answer to one decimal place. b. The cash payback period. years C. The net present value. Use the above table of the present value of an annuity of $1. Round to the nearest dollar if required, use a minus sign to indicate negative net present value for current grading purpose. Present value of annual net cash flows Less amount to be invested Net present value Previous de Next > 721 PM Check My Work 2 more Check My Work uses remaining 610 8/2/2019 5391 6 4.111 4.564 4.968 3.785 4.160 3.326 3.605 3.837 2 4.917 4.355 5.582 4.868 5.335 802 5.759 360 6.145 bollowing: 210 5.328 4.772 4.031 3 4 5 5.6505.019 4.192 Comp a. Th. 6 pe rate of return, assuming the annual earnings are equal to the net cash flows less the a swer to one decimal place. round b. The Jayback period. years c. The net present value. Use the above table of the present value of an annuity of $1. Round to the net present value for current grading purpose. Present value of annual net cash flows Less amount to be invested Net present value Check My Work 2 more Check My Work uses remaining