Bertha'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.Bertha'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

	A	B	C	D	E	F
1		Relevant Cash Flows at End of Each Year
2		Year 0	Year 1	Year 2	Year 3	Year 4
3	Initial oven investment	$(62,000)
4	Annual cash flows from operations (excluding the depreciation effect)		$24,000	$24,000	$24,000	$24,000
5	Cash flow from terminal disposal of oven					$2,000

1.Calculate (a) net present value, (b) payback period, and (c) internal rate of return

2.Calculate accrual accounting rate of return based on net initial investment.