Vilas Company is considering a capital investment of $195,000 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 $12,675 and $50,000, respectively. Vilas 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, eg. 10.5) Cash payback period 3.89 years Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, eg. 10.52%) Annual rate of return 4941.33 % (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 eg.-45 or parentheses eg. (45). Round answer for present value to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value 9934.63