X Your answer is incorrect. Swifty Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $244,200, but it will also increase annual expenses by $184,170. The facility will cost $1,002,000 to build, and it will have a $42,000 salvage value at the end of its useful life. Calculate the annual rate of return on this facility. (Round answer to 2 decimal places, e.g. 52.75.) Annual rate of return 6.23 %

Swifty Company is considering investing in a new facility to extract and produce salt. The facility will increase revenues by $244,200, but it will also increase annual expenses by $184,170. The facility will cost $1,002,000 to build, and it will have a $42,000 salvage value at the end of its useful life. Calculate the annual rate of return on this facility. (Round answer to 2 decimal places, e.g. 52.75.) Annual rate of return Carla Vista Company Is considering a capital investment of $201,400 in additional prodoctive ficilities, 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 imvestment, annual net income and net annual cash fiows are expected to be $16,112 and $53,000, respectively, Caria Vista has a 12% cost of capital rate, which is the required rate of return on the irvestment. Click here to view PV table. (a) Compute the cash payback period. (Round answer to 1 decimal place, e.s. 10.5.) Cashpryback period years Compute the annual rate of return on the proposed capital expenditure (Round answer to 2 decimal places, es. 10.52x.) Annual rate of return (b) Uifig the discounted cash flow technique, compute the net present value. (If the net present value is negative, use either a nezative sign preceding the number e.g. 15 or parentheses e.g. (45). Round answer for present value to 0 decimal places, es. 125, For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Not present value