Question: =========== ACCOUNTING problem. Please answer all in details to get UPVOTE Thanks You are planning to invest $75,000 in new equipment. This investment will generate


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ACCOUNTING problem.
Please answer all in details to get UPVOTE
Thanks
You are planning to invest $75,000 in new equipment. This investment will generate net cash flows of $45,000 a year for the next 2 years. The salvage value after 2 years is zero. The cost of capital is 25% a year a) Compute the net present value Enter negative numbers with a minus sign, i..,-100 not ($100) or (100). b) Compute the payback period. payback period - years c) Compute the accounting rate of return (ARR). To compute ARR, first compute: annual depreciation-$ annual income- $ average investment-$ ARR If your answer is 10%, enter 10 without the percent sign
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