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Answer each independent question, (a) through (e), below. a Project A costs $8,000 and will generate annual after-tax net cash inflows of $3,250 for 5

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Answer each independent question, (a) through (e), below. a Project A costs $8,000 and will generate annual after-tax net cash inflows of $3,250 for 5 years. What is the payback period for this Investment under the assumption that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) b. Project B costs $8,000 and will generate after-tax cash inflows of $1.250 in year 1, $1950 in year 2 $3,400 in year 3, $2,950 in year 4 and 53.400 in year 5. What is the payback period (in years) for this investment assuming that the cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) c. Project C costs $8,000 and will generate net cash inflows of $3,750 before taxes for 5 years. The firm uses straight line depreciation with no salvage value and is subject to a 20% tax rate What is the payback period under the assumption that all cash inflows occur evenly throughout the year? (Round your answer to 2 decimal places.) a. Project costs $8,000 and will generate sales of $4,900 each year for 5 years. The cash expenditures will be $1,950 per year. The firm uses straight-line depreciation with an estimated salvage value of $500 and has a tax rate of 20% (1) What is the accounting (book) rate of return based on the original investment? (Round your answer to 2 decimal places.) 2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.) Use the built-in NPV function in Excel to calculate the amounts for projects a through d (Round your answers to the nearest whole dollar amount.) e1. What is the NPV of project A? Assume that the firm requires a minimum after tax retum of 7% on investment e2. What is the NPV of project B? Assume that the firm requires a minimum after-tax return of 7% on investment 3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 7% on investment 4. What is the NPV of project D? Assume that the firm requires a minimum after tax return of 7% on investment Use the built-in NPV function in Excel to calculate the amounts for projects a through d. (Round your answers to the ne dollar amount.) e1 What is the NPV of project A? Assume that the firm requires a minimum after-tax return of 7% on investment e2 What is the NPV of project B? Assume that the firm requires a minimum after-tax return of 7% on investment e3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 7% on investment 4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 7% on investment b. years years years % C d1 d2 Payback period Payback period Payback period Book rate of return Book rate of return NPV of Project NPV of Project B NPV of Project NPV of Project D % 01 2 03 04

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