Splish Inc. is considering modernizing its production facility by inwesting in new equipment and seling the old equipment. The

following information has been collected on this imestment:

Old Equipment

New Equipment

Cost

$$81,520$ Cost

$$38,900$

Actumulated depreciation

$$40,400$

Estimated useful life

$8$ years

Remaining life

$8$ years

Salvage value in $8$ years

$$4,400$

Current salvage value

$$10,720$

Amual cash operating costs

$$30,100$

Salvage value in $8$ years

$$0$

Arrual eash operating costs $$35,300$

Depreciation is $$10,190$ per year for the old equipment. The straight$-$line depreciation method would be used for the new equipment

ower an eight$-$year period with salvage value of $$4,600.$

Determine the cash payback period. $($Ignore income taxes.$)($Round answer to $3$ decimal ploces, es $15\mathrm{.}275.)$

Cash payback period

years

Calculate the net present value assuming a $12\%$ rate of return. $($Ignore income taxes.$)($ff the net present value is negative, use either $a$

negative sign preceding the number e$.$g$.-45$ or parentheses eg$.(45).$ For calculation purposes, use $5$ decimal places as displayed in the

factor table provided, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.5,275.)$

Click here to view the factor table.

Net present value