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use the charts to answer b pls TABLE 1 Future Value of 1 TABLE 2 Future Value of an Annuitv of 1 TABLE 3 Present
use the charts to answer b pls
TABLE 1 Future Value of 1 TABLE 2 Future Value of an Annuitv of 1 TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1 Oriole Company is considering a capital investment of $186,200 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. 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 $17,689 and $49,000, respectively. Oriole has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view the factor table. (a) Compute the cash payback period. (Round answer to 1 decimal place, e.g. 10.5.) Cash payback period years Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.52\%.) Annual rate of return % (b) Using the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer for present value to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present valueStep by Step Solution
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