Vilas company is considering a capital investment of $190,900 in additional production facilities. the new machinery is expected to have a useful life of 5 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 $11,600 and $49,900, respectively. vilas has a 12% cost of capital rate, which is the required rate of return on the investment.

required:

1. compute the cash payback period.

2. compute the annual rate of return on the proposed capital expenditure.

3. using the discounted cash flow technique, compute the net present value.

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100