80. Discounting cash flowsDetermine the present value of the following cash flows discounted at an annual rate of 10%:(a) $96,000 to be received five years from today (the present value of $1 at a 10%...

80. Discounting cash flows
Determine the present value of the following cash flows discounted at an annual rate of 10%:
(a) $96,000 to be received five years from today (the present value of $1 at a 10% compound interest rate for five years is 0.621): $__________

(b) $37,000 to be received annually for five years (the present value of $1 at 10% received annually for five years is 3.791): $__________
(c) $58,000 to be received annually for six years, with an additional $16,000 salvage value to be received at the end of the sixth year (the present value of $1 at 10% received annually for six years is 4.355, and the present value of $1 due six years hence at 10% is 0.564): $__________

81. Capital budgeting
Zhang Corporation is considering investing $190,000 in equipment to produce a new product. Useful service life of the equipment is estimated to be 5 years, with zero salvage value. Straight-line depreciation is used. The company estimates that production and sale of the new product will increase net income by $65,000 a year

(a) The payback period will be __________ years.
(b) The expected rate of return on average investment will be __________.