Morgan Company is considering a capital investment of $210,000 in additional productive facilities. The new machinery is expected to have a useful life of five 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 $20,000 and $60,000, respectively. Morgan has a 12% cost of capital rate, which is also the minimum acceptable rate of return on the investment (a) Calculate (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure. (Round cash payback period to 1 decimal place, e.g. 15.1 and annual rate of return to 2 decimal places, e.g. 15.12%.) (1) Cash payback period years (2) Annual rate of return % eTextbook and Media Save for Later Attempts: unlimited Submit Answer (b) Using the discounted cash flow technique, calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Click here to view the factor table. Net present value $