A B D E F 1 Relevant Cash Flows at End of Each Year 2 Year 0 Year 1 Year 2 Year 3 Year 4 $ (62,000) 3 Initial oven investment Annual cash flows from operations 4 (excluding the depreciation effect) $ 24,000 $ 24,000 $ 24,000 $ 24,000 Emma's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years. The estimated pretax cash flows for the oven are as shown in the table that follows, with no anticipated change in working capital. Emma's Bakery has a 10% after-tax required rate of return and a 30% income tax rate. Assume depreciation is calculated on a straight-line basis for tax purposes using the initial investment in the oven and its estimated terminal disposal value. Assume all cash flows occur at year-end except for initial investment amounts. Requirement 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return. A B D E F 1 Relevant Cash Flows at End of Each Year 2 Year 0 Year 1 Year 2 Year 3 Year 4 $ (62,000) 3 Initial oven investment Annual cash flows from operations 4 (excluding the depreciation effect) $ 24,000 $ 24,000 $ 24,000 $ 24,000 Emma's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years. The estimated pretax cash flows for the oven are as shown in the table that follows, with no anticipated change in working capital. Emma's Bakery has a 10% after-tax required rate of return and a 30% income tax rate. Assume depreciation is calculated on a straight-line basis for tax purposes using the initial investment in the oven and its estimated terminal disposal value. Assume all cash flows occur at year-end except for initial investment amounts. Requirement 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return