step-by-step so I can understand it better

5. Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $22,000 and $62,000, respectively Yappy requires a 10% retum on all new investments Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 5747 5 .535 5.335 5.146 4.968 4.487 Instructions (a) Compute each of the following 1 Cash payback period. 2 Net present value 3 Profitability index (b) Should the equipment be purchased