6 Exercise 16-37 Payback, Accounting Rate of Return; Net Present Value; Taxes (Sections 1, 2, and 3) (L0 16-1, 16-6, 16-8} [The foiiowing information appiies to the questions displayed bellow} \"\"1 0T3 Metro Car Washes, Inc., is reviewing an investment proposal. The initial cost as well as the estimate of the book value of _ _ . the Investment at the end of each year, the net aftertax cash flows for each year, and the net Incomefor each year are presented in the following schedule. The salvage value ofthe investment at the end of each year is equal to its book 451 value. There would be no salvage value at the end of the investment's life. points Initial Cost Annual Net AfterTax Annual Year and Book Value Cash Flows Net Income 9 $375,999 El 1 259,999 $195, 999 $41,999 eBook 2 159,999 143,999 43,999 3 75,999 129,999 45,999 4 25,999 97,999 47,999 5 9 74, 999 49,999 Prim \"1. Management uses a '16 percent aftertax target rate of return for new investment proposals. Rafe'ences Use Appendix A for your reference. (Use appropriate factorls} from the tables provided.} Exercise 16-37 Part 1 Required: 1. Compute the project's payback period. Assume that the cash flows in years 1 through 5 occur uniformly throughout each year. [Round your answer to 2 decimal places.) Req uired information pm gm 3 Exercise 16-37 Payback, Accounting Rate of Return; Net Present Value; Taxes (Sections 1, 2, and 3) (L0 16-1, 16-6, 16-8) [The following information applies to the questions displayed below] 4.61 points Metro Car Washes, Inc.. is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net altertax cash ows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book El value. There would be no salvage value at the end of the investments life. EBODK Initial Cost Annual Net AfterTax Annual Year and Book Value Cash Flows Net Income 6 9 $375,306 P . 1 253, 306 $155, sea $41, see \" m 2 153 , 306 143, see 43 , ass 3 75, see 120, see 45, see \"=- 4 25,608 sneer: 4?,390 Refere MES 5 a 7'4, sea 49 , ass Management uses a 16 percent after-tax target rate of return for new investment proposals. Use Appendix A for your reference. {Use appropriate factor{s} from the tables provided.} Exercise 16-37 Part 2 2 Calculate the accounting rate of return on the investment proposal. Base your calculation on the initial cost ofthe investment. [Round your "Percentage" answer to 2 decimal places [i.e., .1234 should be entered as 12.34).) 8 Required information Part 3 of 3 Exercise 16-37 Payback, Accounting Rate of Return; Net Present Value; Taxes (Sections 1, 2, and 3) (LO 16-1, 16-6, 16-8) [The following information applies to the questions displayed below.] 1.61 points Metro Car Washes, Inc., is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investment's life. eBook Initial Cost Annual Net After-Tax Annual Year and Book Value Cash Flows Net Income $375, 000 Print 250, 000 $166, 060 $41, 000 150, 000 143, 060 43, 900 75, 900 120, 060 45, 000 25, 000 97, 060 47,906 References 74, 000 49, 900 Management uses a 16 percent after-tax target rate of return for new investment proposals. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Exercise 16-37 Part 3 3. Compute the proposal's net present value. (Round intermediate calculations to the nearest whole dollar.) Net present value