ICA Corporation is reviewing an investment proposal. The schedule below presents the initial cost and estimates of

Question:

ICA is reviewing an investment proposal. The schedule below presents the initial cost and estimates of the investment's book value at the end of each year, the net cash flows for each year, and the net income for each year. All cash flows are assumed to take place at the end of the year. The investment's at the end of each year is equal to its book value. There would be no at the end of the investment's life.

ICA Corporation is reviewing an investment proposal. The schedule below

ICA Corporation uses a 15% target rate of return for new investment proposals.
Instructions
(a) Calculate the cash payback period for this proposal.
(b) Calculate the annual rate of return for the investment.
(c) Calculate the net present value of the investment.

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