PLEASE ANSWER ALL PARTS

Question 35 (15 points) Saved XYZ company is trying to determine whether to expand their operations in another state. The expansion would require an initial investment of $500,000 with a $0 salvage value after 5 years. Incremental net income from the investment would be $104,000 each year for the next five years. Cash inflows from the investment would be $128,000 for the next five years. XYZ company has a cost of capital/hurdle rate of 10% for all investments. (Please show as much work as you can) a. What is the annual rate of return on the expansion? b. What is the cash payback period? (round to nearest tenth) c. Compute the net present value of the investment using a 10% discount rate. Present Value Tables: Present value of $1 Present Value of Annuity 10%, 5 periods d. Should XYZ company accept the project? Explain your reasoning using your answers from parts a-c 0.62092 3.79079 Paragraph V