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Noway Jose Communications, Inc., is considering purchasing a new piece of computerized data transmission equipment. Estimated annual netcash inflows for the new equipment are $590,000. The equipment costs $2 million, it has a five-year life, and it will have no residual value at the end of the five years. The company has a minimum rate of return of 12 percent. Compute the net present value of the piece of equipment. Should the company purchase it? Why?. Refer to the information in SE5 for Noway Jose COMMUNICATIONS, Inc. Compute the payback period for the piece of equipment. (Round to one decimal place.) Does this method yield a positive or a negative response to the proposal to buy the equipment, assuming that the company sets a maximum payback period of four years? Territories Cable, Inc., is considering purchasing new data transmission equipment. Estimated annual cash revenues for the new equipment are $1 million, and operating costs (including depreciation of $400,000) are $825,000. The equipment costs $2 million, it has a five-year life, and it will have no residual value at the end of the five years. Compute the payback period for the piece of equipment. (Round to one decimal place.) Does this method yield a positive or a negative response to the proposal to buy the equipment if the company has set