Average rate of Return, Cash Payback period, Net Present Value Method Cross Country Railrond Inc. is considering acquiring equipment at a cost of $464,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $58,000. 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 Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 2 5.582 4.868 4.564 4.160 3.605 B 6.210 5.335 4.968 4.457 3.837 9 6.802 5.759 5.328 4.772 4,031 10 7.360 6.145 5.650 5.019 4.192 Compute the following 6 a. The average rate of return, assuming the annual Gamings are equal to the net cash flows less the annual depreciation expense on the equipment. If required, round your answer to one decimal place. b. The cash payback period 3 720000.00 boca Show Me How 69 Year 10% 1296 15% 20% 1 0.909 0.943 0.833 0.893 0.870 1.626 2 1.736 1.833 1.528 1.690 3 2.673 2487 2.402 2.283 2.106 4 3,465 3.170 3.037 3.605 2.589 2.991 5 4.212 2.855 3.353 3.785 3.791 4.355 4.912 6 4.111 3.326 7 5.582 4.868 4.160 3.605 3.837 8 6.210 5.335 4.487 4.564 4,958 5.328 5.650 0 5.802 5.759 4.772 4.031 5.019 4.192 10 7.360 6.145 Compute the following: a. The average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment. If required, round your answer to one decimal place. 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. Present value of annual net cash flows Less amount to be invested Net present Value