Answer each independent question, (a) through (e), below. a. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 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 $5,000 and will generate after-tax cash inflows of $500 in year 1; $1,200 in year 2; $2,000 in year 3, $2,500 in year 4; and $2,000 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 $5,000 and will generate net cash inflows of $2,500 before taxes each year for 5 years. The firm uses straight-line depreciation with no salvage value and is subject to a 25% 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.) d. Project D costs $5,000 and will generate sales of $4,000 each year for 5 years. The cash expenditures will be $1,500 per year. The firm uses straight-line depreciation with an estimated salvage value of $500 and has a tax rate of 25%. (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 return of 8% on investment. e2. What is the NPV of project B? Assume that the firm requires a minimum after-tax return of 8% on investment e3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 8% on investment. e4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 8% on investment. Payback period 2.78 years 1 of 2 Next > Prev o search Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does r 1 X Answer is not complete. Payback period Payback period Payback period Book rate of 2.78 O years 3.52 O years C. years d1. 24.00 O % return Book rate of return NPV of Project d2 2,187 O e1. NPV of Project e2 1,278 NPV of Project 3.485 e3. NPV of Project e4. 1 of 2 Next > Rtev here to search