Basic Evaluation Methods. The Rango Company is considering a capital investment for which the initial outlay is $20,000. Net annual cash inflows (before taxes) are predicted to be $4,000 for 10 years....

Basic Evaluation Methods. The Rango Company is considering a capital investment for which the initial outlay is $20,000. Net annual cash inflows (before taxes) are predicted to be $4,000 for 10 years. Straight-line depreciation is to be used, with an estimated salvage value of zero. Ignore income taxes. Compute the: (a) payback period; (b) accounting rate of return (ARR); (c) net present value (NPV), assuming a cost of capital (before tax) of 12 percent; and (d ) internal rate of return (IRR).