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Vilas Company is considering a capital investment of $191,700 in additional productive facilities. The new machinery...

Vilas Company is considering a capital investment of $191,700 in additional productive facilities. 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 investment, annual net income and net annual cash flows are expected to be $12,700 and $49,200, respectively. Vilas has a 12% 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 and annual rate of return (Round answer to 2 decimal places, e.g.

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$ 1,91,700 Capital Investment $ Annual Income 12,700 Net Annual Cash Flow 49,200 Computation Of cash Payback period Capital I

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