Bascilla, Incorporated is trying to determine the value of several projects. Currently there are four being examined:

Required:

1. Compute the Accounting Rate of Return for each project.
2. Compute the Payback Period for each project.
3. Management believes that purchasing the latest equipment will result in uneven cash flows at the beginning of its useful life and steady over time. Using management's predictions, use the chart to determine the Payback Period with uneven cash flows.

Hi, I need help on all the yellow empty fields. What is already filled in, is correct.

Can you please explain and show formula on how to calculate it, thank you.

\begin{tabular}{lrrrr} & & Hire Extra & Acquire a & \begin{tabular}{c} Purchase Latest \\ Project \end{tabular} \\ Initial Cost & Automation & Crew & Supplier & Model of Equipment \\ Salvage Value & $650,000 & $91,000 & $1,200,000 & $435,000 \\ Annual Increase to Net Income & $90,000 & N/A & N/A & $133,000 \\ Project Life (years) & $64,000 & $17,000 & $46,000 & $48,000 \\ \hline \end{tabular} \begin{tabular}{cr} Year & Cash Flows \\ 1 & $65,000 \\ 2 & 35,000 \\ 3 & 104,000 \\ 4 & 55,000 \\ 5 & 23,000 \\ 6 & 87,000 \\ 7 & 70,000 \\ 8 & 68,000 \end{tabular} For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 \begin{tabular}{|c|c|c|c|c|c|} \hline & A & B & C & D & E \\ \hline \multicolumn{6}{|l|}{1} \\ \hline 2 & \multicolumn{5}{|c|}{ Bascilla, Incorporated is trying to determine the value of several projects. Currently there are four being examined: } \\ \hline \multicolumn{6}{|l|}{3} \\ \hline 4 & Project & Automation & Hire Extra Crew & Acquire a Supplier & \begin{tabular}{c} Purchase Latest Model of \\ Equipment \end{tabular} \\ \hline 5 & Initial Cost & 650,000 & 91,000 & 1,200,000 & 435,000 \\ \hline 6 & Salvage Value & 90,000 & N/A & N/A & 133,000 \\ \hline 7 & Annual Increase to Net Income & 64,000 & 17,000 & 46,000 & 48,000 \\ \hline 8 & Project Life (years) & 10 & 15 & 20 & 8 \\ \hline \multicolumn{6}{|l|}{9} \\ \hline 10 & Required: & & & & \\ \hline 11 & \multicolumn{5}{|c|}{ 1. Compute the Accounting Rate of Return for each project. } \\ \hline 12 & \multirow{2}{*}{\multicolumn{5}{|c|}{ 2. Compute the Payback Period for each project. }} \\ \hline 13 & & & & & \\ \hline 14 & & Automation & Hire Extra Crew & Acquire a Supplier & \begin{tabular}{c} Purchase Latest Model of \\ Equipment \end{tabular} \\ \hline 15 & Accounting Rate of Return & 9.8% & 18.7% & 3.8% & 11.0% \\ \hline 16 & & & & & \\ \hline 17 & Payback Period & & 5.35 & 26.09 & \\ \hline \end{tabular} 3. Management believes that purchasing the latest equipment will result in uneven cash flows at the beginning of its useful life and steadv over time