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.TheAyayaiCompany is planning to purchase $525,000of 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 Flows1 $200,0002 150,0003 100,0004 60,0005 60,0006 40,0007 40,000Total $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 yearsyears andenter a number of monthsmonths.(b)IfAyayairequires a payback period of4years or less, should the company make this investment?The companyselect an option should or should notmake this investment.10.Anthonys 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 $3,500will be needed to run the system.Anthonyestimates that the system will generate additional annual sales revenue of $23,400and that annual cash expenditures will be $18,906.Anthonyuses straight-line depreciation. The software, computer, and printer will have a useful life of5years. The system will have a $250salvage value at the end of its5-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