Question: Please show step by step. Please make sure that it is correct formula i3radley company is looking into investing in the purchase of a new

Please show step by step. Please make sure that it is correct formula

Please show step by step. Please make sure that it is correct

i3radley company is looking into investing in the purchase of a new building for $250,000. The building is expected to have a 10-year life with $30,000 salvage value. Annual net cash flows are expected to be $60,000 and Net Income is expected to be $40,000. The company's required rate of return is 12%. Using the information above, compute the following (round all answers to 1 decimal place): 1. 2. 3. Calculate the Cash Payback Period (5 pts) Calculate the Net Present Value (10 pts) Compute the NPV of another similar building with a cost of $300,000, with 10year life, salvage value of $20,000, which can generate $65,000 in annual cash flows, compute the profitability index of the two buildings. (10 pts) Compute the Profitability Index of both buildings and state which building is a better investment and why? (5 pts) Compute the Annual Rate of Return, assuming the company uses Straight~Line depreciation (10 NS) The company accepts investments with Cash Payback period of less than the half of the useful life, Positive NPV, and an Annual Rate of Return greater than 25%. Should the investment be accepted? Yes or No, and explain why for each method used (10 pts) Instructions: Show all calculations for each item step-by-step, by numbering your answers to receive full credit. Please show work on paper, by hand, take an image scan, and upload

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