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41)(6 points)Bryant Company has obtained the following data about a possible planned investment: Cost$155,000 Terminal salvage value in 10 years$5,000 Annual cash operating savings for

41)(6 points)Bryant Company has obtained the following data about a possible planned investment:

Cost$155,000

Terminal salvage value in 10 years$5,000

Annual cash operating savings for 10 years (end of year)$25,000

Estimated useful life in years10

Minimum desired rate of return8%

The company uses straight-line depreciation method for financial reporting. Ignore income taxes. The cash operating savings of $25,000 do not include depreciation expense.

Required:

A) Compute the net present value of the investment.

____________________

B) Compute the payback period.

____________________

C) Compute the accounting rate of return using the initial required investment.

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