12p1

Bob Jensen Inc. purchased a $740.000 machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all it can manufacture in the next 10 years. To encourage capital investments, the government has exempted taxes on profits from new investments. This legislation is to be in effect for the foreseeable future. The machine is expected to have a 10-year useful life with no salvage value. Jensen uses straight-line depreciation. Jensen uses a 10% discount rate in evaluating capital investments, the investment is subject to taxes, and the projected pretax operating cash inflows are as follows Pretax Cash 1 74,8e8 91,000 137,808 228,8e8 5 274,86 343,00 389,889 275,888 138,668 92,888 18 Jensen has been paying 25% for combined federal, state, and local income taxes, a rate that is not expected to change during the period of this investment. The firm uses straight-line depreciation. Assume. for simplicity, that MACRS depreciation rules do not apply Required: ising Excel, compute the following for the proposed investment ce crlations. Round your final answer to 1 decimal ploce.) 1. The payback period, under the assumption that the cash nfows occur evenly throughout the year (Do not round Intermediate ccounting (book) rate of return based on (a) initial investment, and (b) average investment. (Round your final answers to 1 esert value (NPV) (Do not round Intermedlate calculetions. Round your final answer to nearest whole dollar amount.) the present value payback period of the proposed investment under the assumation that the cash inflows occur evenly throughout Note use the formula at the bottom of AageadixDEEto caiqulate present value factors.) (Do not round Intermedlate halirate of reurn IRR), (De not round Intermedlete caiculations. Round your final answer te 1 declmal place.) fied internal rate of return (MIRR) (Do not round Intermedlate celculations. Round your final answer to 1 declmal