Sunland was presented with a second capital investment that provided similar production facilities as the first one. This investment cost $395,000, has a useful life of 7 years with a salvage value of $14,000. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $22,495 and $79,000respectively. Sunlands 7% cost of capital is also the required rate of return on the investment. Compute the cash payback period. (Round answer to 0 decimal places, e.g. 25.)

Cash payback period

enter the cash payback period in number of years rounded to 0 decimal places years

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Attempts: 2 of 3 used

(c2)

Compute the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.)

Annual rate of return

enter the annual rate of return in percentages rounded to 2 decimal places %