Vilas Company is considering a capital investment of $190,100 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 $10,000 and $49,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view PV table. (a) Compute the cash payback period. (Round answer to 2 decimal places, e.g. 10.50.) Cash payback period years Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 10.50.) 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 value When using Table 3 , the future value is multiplied by the present value factor specified at the intersection of the number of periods and the discount rate. the $826.45($1,000.82645) computed previously. The following two demonstration problems (Illustrations G-12 and G-13) illustrate how to use Table 3. Present value of a series of future amounts computation value of 1 to be received periodically for a given number of payments. It assumes that each payment is made at the end of each period. TABLE 4 Present Value of an Annuity of 1