w Attempt History rrent Attempt in Progress Bridgeport Inc. is considering modernizing its production facility by investing in new equipment and selling the old following information has been collected on this investment Old Equipment New Equipment Cost $81.040 Cost $38.000 Accumulated depreciation $40,000 8 years Remaining life 8 years Estimated useful life Salvage value in 8 years Annual cash operating costs $4.800 Current salvage value $9.860 $30,700 Salvage value in 8 years $0 Annual cash operating costs $35.900 Depreciation is $10,130 per year for the old equipment. The straight-line depreciation method would be used for the over an eight-year period with salvage value of $4.800 Determine the cash payback period. (Ignore income taxes.) (Round answer to 3 decimal places, e.g. 15.275 Cash payback period 5.411 years e Textbook and Media Solution (b) Your Answer Correct Answer X Your answer is incorrect. Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.) Annual rate of return 20.61 % Calculate the net present value assuming a 12% rate of return. (Ignore income taxes.) (If the net present value is negative, use either a negative sign preceding the number eg. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answer to 0 decimal places, eg. 5,275.) Click here to view the factor table Net present value $