a, b and C

Nixon Harvesting is considering the purchase of a new tractor. The tractor costs $900,000, and has a 6 -year life. The company uses the straight-line depreciation method, and the tractor has no residual value. The tractor will produce annual cash inflows of $400,000 and annual cash outflows of $190,000. Management has a requiled rate of return of 9K. For purposes of responding to each requirement below, you may assume no income tanes. (a) Calculate the net present value of the tractor investment, aspuming an 9% rate of return. (b) Caiculate the accounting rate of return for the tractor investment. (c) Calculate the internal rate of return for the tractor investment. (d) Calculate the payback period for the tractor investment. a. Cash Flow PV Factor \&8\% PV Initial investment Annual Cash Flow Net Present Value b Net Cash Flow Back out Depreciation income Annual Income Avg Imvestment c Initial Investment Annual Cash Flow Net Present Value