Top Growth Farms, a farming cooperative, is considering purchasing a tractor for $551,500. The machine has a 10-year life and an estimated salvage value of $36,000. Delivery costs and set-up charges will be $12,100 and $400, respectively. Top Growth uses straight-line depreciation.

Top Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $400. Fuel is $50 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.418.

For the new tractor, compute the:

Cash payback period.(Round answer to 1 decimal places, e.g. 15.2.)

Cash payback period

years

Net present value.

Net present value

$

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

Annual rate of return

%