Ayayai Company is considering two capital invastment proposals. Ralavant data on aach projact are as...

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Accounting

Ayayai Company is considering two capital invastment proposals. Ralavant data on aach projact are as follaws:
Depraciation is computed by the straight-line mathod with no salvage value. Ayayai raquires an 9% rate of raturn on all new
invastments. The present value of 1 for 8 pariods at 8% is 0.54027 and the present value of an annuity of 1 for 8 periods is 5.74664.
Click hare tovisw PV tables.
(a)
Your Answer
Carrect Answer
Your answer is correct.
Compute the cash payback pariod for each project. (Round answers to 1 decimal place, e.g.15.2)
Cash payback pariod
yaars
years
eTextbook and Medla
Solutlon
(b)
Your anawer is incorrect.
Compute the nat presant value for each project. (For calculation purposes, use 5 decimal places as displayed in the factor table
provided. Round answers to 0 decimal places, eg.5,275.]
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