9.The Ayayai Company is planning to purchase $525,000 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the i

9.The Ayayai Company is planning to purchase $525,000 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment.Year             Projected Cash Flows

1                            $200,000

2                        150,000

3                           100,000

4                           60,000

5                          60,000

6                     40,000

7                   40,000

Total                 $650,000(a) Calculate the payback period for the proposed equipment purchase. Assume that all cash flows occur evenly throughout the year.Payback period enter a number of years  years and enter a number of months  months.(b) If Ayayai requires a payback period of 4 years or less, should the company make this investment?The company select an option                                                           should or should not make this investment.

10.Anthony’s House of Music wants to purchase Transpose It, a system that transposes any song in its database and prints sheet music in the requested key. This system allows singers to obtain sheet music in keys that are suitable to their vocal range. The software for the system costs $10,700; a new computer and a laser printer costing $3,500 will be needed to run the system. Anthony estimates that the system will generate additional annual sales revenue of $23,400 and that annual cash expenditures will be $18,906. Anthony uses straight-line depreciation. The software, computer, and printer will have a useful life of 5 years. The system will have a $250 salvage value at the end of its 5-year useful life.

(a)Calculate the annual net operating income generated by the system.Annual net operating income?

(b) Calculate the accounting rate of return of the system.Accounting rate of return enter the accounting rate of return in percentages