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Challenge Exercise 12-1 (Part Level Submission) Carper Company is considering a capital investment of $356,700 in additional productive facilities. The new machinery is expected to have useful life of 6 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $17,835 and $87,000, respectively. Carper has an 9% cost of capital rate, which is the required rate of return on the investment. (a1) Your answer is correct. Compute the cash payback period. (Round answer to 2 decimal places, e.g. 2.25.) Cash payback period 4.1 years Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 15 used (a2) Your answer is correct. Compute the annual rate of return on the proposed capital expenditure. (Round answer to 2 decimal places, e.g. 2.25%.) Annual rate of return 10 J% Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 6 of 15 used (b) Your answer is incorrect. Try again. Using the discounted cash flow technique, compute the net present value. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 2 decimal places e.g. 589.71.) Net present value 146,247 Click if you would like to Show Work for this question: Open Show Work

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