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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

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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 ofter-tax cash inflows of $500 in year 1: $1200 in year 2. $2.000 in year 2.52.500 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 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 Answer is not complete. a 2.78 years 3.52 years c. 2.35 years d1 24.00 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 43.63 $ 6,955 02 3 04

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