Add Net Present Value Solution for Part B

Add Annual Rate of Return for Part C

Novak Growth Farms, a farming cooperntive, is considering purchasing a tractor for $565,270. The machine has a 10 -year life and an estimated salvage value of $47,000. Delivery costs and set-up charges will be $13,200 and $420, respectively. Noval Growth uses straight-line depreciation and has a required rate of return of 9%. Novak Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of $420. Fuel is $55 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766 Click here to view Pv tables. For the now tractor, compute the: (a) Cash payback period. (Round answer to 1 decimal places, es. 15.2.) Cashpaybackperiod years