Please assist with the attached. I need help determining the following: Can you please show how you arrived at the answer so I can compare?
Incremental revenue $180,000
Incremental expenses:
Expenses other than depreciation $85,000
Depreciation(Straight-line basis) 38,000 (123,000)
Incremental net income $57,000
All revenue and expenses other than depreciation will be received and paid in cash. Compute the following for this proposal:
(a) Annual net cash flow: $__________
(b) Payback period: __________ years
(c) Return on average investment: __________%
(d) Net present value, discounted at an annual rate of 6% (present value of $1 due in 10 years, discounted at 6%, is 0.558; present value of $1 received annually for 10 years, discounted at 6%, is 7.360): $__________