Whispering Winds Company is considering a capital investment of $392,400 in additional equipment. The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash flows are expected to be $39,000 and $79,000, respectively. Whispering Winds requires a 10% return on all new investments.

		Present Value of an Annuity of 1
Period		8%		9%		10%		11%		12%		15%
8		5.74664		5.53482		5.33493		5.14612		4.96764		4.48732

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(a)

Compute each of the following: (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round cash payback period, profitability index and annual rate of return to 2 decimal places, e.g. 15.25 and other answers to 0 decimal places, e.g. 5,275.)

1.		Cash payback period.		enter a number of years rounded to 2 decimal places	years
2.		Net present value.		$enter a dollar amount rounded to 0 decimal places
3.		Profitability index.		enter profitability index rounded to 2 decimal places
4.		Internal rate of return.		enter percentages rounded to 0 decimal places	%
5.		Annual rate of return.		enter percentages rounded to 2 decimal places	%