Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $124,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $31,000. The company's minimum desired rate of return for net present value analysis is 15%. Present Value of an Annuity of $1 at Compound Interest Compute the following: a. The average rate of return, giving effect to straight-line depreciation on the investment. If required, round your answer to one decimal place. X% 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 $X Amount to be invested Net present value