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Cash Payback Period A project has estimated annual net cash flows of $54,000. It is estimated to cost $226,800. Determine the cash payback period. Round your answer to one decimal place. years Net Present Value A project has estimated annual net cash flows of $10,000 for four years and is estimated to cost $32,500. Assume a minimum acceptable rate of return of 12%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value. Net present value of the project (round to the nearest dollar) Present value index (rounded to two decimal places) Check My Work Assignment Score: 1.22% All work saved. Save and Exit Submit Assignment for Grading Internal Rate of Return A project is estimated to cost $100,775 and provide annual net cash flows of $25,000 for nine years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 5.650 5.019 4.192 6.195 Determine the internal rate of return for this project, using the Present Value of an Annuity of $1 at Compound Interest table shown above. % Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project 2 Project A $36,000 Amount of investment $44,000 Useful life 4 years 5 years Estimated residual value 0 0 Estimated total income over the useful life $3,960 $11,550 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A % Project 2 %

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