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Wildhorse Company is considering a capital imestment of $192,500 in additional productive facilities. The new machinery is bexpected to have a useful life of 5

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Wildhorse Company is considering a capital imestment of $192,500 in additional productive facilities. The new machinery is bexpected to have a useful life of 5 years with no salvage value Depreciation is by the straight line method Durimg the life of the imvestment, annual net income and tat annual cash flows are expected to be $16,170 and $55,000, respectively. Wildhorse hasa 1226 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, (Rodind answer to 1 dedmal ploce, es. 10.5.) Cast paytack period rears Compute thin annuat rate of ceturn on the proponed capital expenditure. (Round answer to 2 decimidil ploces, eg, 10.52x.) Annualrate of return (b) Using the discounted cash flow technique, compute the net preseat value. (If the net precerit value b negative, use cither a negatike sign preceding the number eg. 45 or parentheses es. (45), Round onwer for present volue to 0 dedimd ploces, es. 125, For chlcidation purposer, use 5 decimal places as displored in the factor toble provided) Net present value Wildhorse Company is considering a capital imestment of $192,500 in additional productive facilities. The new machinery is bexpected to have a useful life of 5 years with no salvage value Depreciation is by the straight line method Durimg the life of the imvestment, annual net income and tat annual cash flows are expected to be $16,170 and $55,000, respectively. Wildhorse hasa 1226 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, (Rodind answer to 1 dedmal ploce, es. 10.5.) Cast paytack period rears Compute thin annuat rate of ceturn on the proponed capital expenditure. (Round answer to 2 decimidil ploces, eg, 10.52x.) Annualrate of return (b) Using the discounted cash flow technique, compute the net preseat value. (If the net precerit value b negative, use cither a negatike sign preceding the number eg. 45 or parentheses es. (45), Round onwer for present volue to 0 dedimd ploces, es. 125, For chlcidation purposer, use 5 decimal places as displored in the factor toble provided) Net present value

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