Bob Jensen Inc. purchased a $590,000 machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all it can manufacture in the next 10 years. To encourage capital investments, the government has exempted taxes on profits from new investments. This legislation is to be in effect for the foreseeable future. The machine is expected to have a 10-year useful life with no salvage value. Jensen uses straight-line depreciation. Jensen uses a 10% discount rate in evaluating capital investments, the investment is subject to taxes, and the projected pretax operating cash inflows are as follows: tax Cash nts 1$59,000 73,000 110,000 183,000 220,000 275,000 248,000 8 220,000 9 110,000 10 73,000 Jensen has been paying 25% for combined federal, state, and local income taxes, a rate that is not expected to change during the period of this investment. The firm uses straight-line depreciation. Assume, for simplicity, that MACRS depreciation rules do not apply Required: Using Excel, compute the following for the proposed investment . The payback period, under the assumption that the cash inflows occur evenly throughout the year. (Do not round intermediate calculations. Round your final answer to 1 decimal place.) 2. The accounting (book) rate of return based on (a) initial investment, and (b) average investment. (Round your final answers to 1 decimal place.) 3. The net present value (NPV). (Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) 4. The present value payback period of the proposed investment under the assumption that the cash inflows occur evenly throughout the year. (Note use the formula at the bottom of ARpendixC. Table 1 to calculate present value factors) (Do not round intermediate calculations. Round your final answer to 2 decmal places.) 5. The internal rate of return (RR). (Do not round intermediate calculations. Round your final answer to 1 decimal place.) 6. The modified internal rate of return (MIRR). (Do not round intermediate calculations. Round your final answer to 1 decimal place.) (In conjunction with this question, you might want to consult either of the following two references: MIRR Function and/or IRR in Excel) oints Skipped TABLE 1 Present Value of $1 10% 11% 12% 13% 14% 15% 20% 25% 30% 0962 0952 0.943 0.935 0926 0.917 0.909 0.901 0893 0.885 0877 0.870 0833 0S00 0.769 0925 0907 0.890 0.873 0857 0842 0.826 0812 0.797 0.783 0.769 0.756 0.694 0.640 0.592 0.889 0 S64 0.840 0 816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0658 0.579 0512 0.455 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0613 0592 0.572 0482 0.410 0.350 0 822 0.784 0.747 0.713 0681 0650 0621 0.593 0.567 0.543 0519 0497 0.402 0328 0.269 Periods 4% 5% 6% 7% 8% 9% 0.790 0.746 0.705 0.666 0630 0.596 0564 0.535 0.507 0.430 0456 0432 0.335 0.262 0.207 0760 0.711 0665 0.623 0583 0547 0513 0482 0452 0425 0400 0.376 0279 0.210 0.159 0.731 0.677 0.627 0582 0.540 0502 0.467 0.434 0404.0376 0.35 0.327 0233 0.168 0.123 0.703 0.645 0.592 0.544 0.500 0 460 0.424 0.391 0.361 0.333 0.30S 0.284 0.194 0.134 0094 10 0.676 0.614 0.558 o50s 0463 0422 0.386 0 352 0 322 0.295 0.270 0.247 0 162 0 107 0073 11 0650 0.585 0527 0475 0.429 0.3 0350 0.317 0237 0.261 0 237 0215 0.135 0086 0056 0.625 0557 0.497 0444 0.397 0.356 0319 026 0257 0.231 0 20s 0 187 0.112 0069 o043 13 0.601 0.530 0.469 0415 0.368 0.326 0290 0.25S 0229 0204 0.182 0.163 0093 0055 0033 14 0577 0 50s 0.442 0388 0.340 0 299 0263 0 232 0205 0 181 0.160 0141 0078 0044 0025 15 0555 0.481 0417 0.362 0315 0.275 0.239 0.209 0.133 0160 0.140 0. 123 0.065 0.035 0020 16 0534 0.458 0.394 0.339 0292 0252 0.218 0 138 0 163 0 141 0.123 0107 0054 0.028 0015 17 0.513 0.436 0.371 0317 0.270 0231 0.193 0.170 0.146 0.125 0 103 0093 0 045 0023 0012 0.250 0212 0180 0153 0.130 0.111 0095 OOS 0033 0018 0009 0475 0.396 0.331 0277 0232 0.194 0.164 0.138 0.116 0.098 0.033 0070 0031 0014 0007 20 0.456 0.377 0312 0258 0.215 0.178 0.149 0.124 0.104 0087 0.073 0.061 0.026 0012 0.005 22 0.422 0342 0278 0226 0.184 0.150 0.123 0.101 0033 0068 0.056 0046 0018 0.007 0.003 24 0.390 0.310 0.247 0.197 0.158 0.126 0.10 02 0066 0053 0043 0035 0013 0005 0 002 18 0494 0416 0350 0.296 25 0.375 0295 0.233 0.14 0.146 0.116 0092 0.074 0059 0047 0.038 0.030 0.010 0.004 0.001 30 0.308 0231 0.174 0.131 0099 0 075 0.057 0.044 0033 0026 0.020 0.015 0004 0001 0.000 35 0.253 0.131 0.130 0094 0068 0049 0 036 0026 0019 0014 0010 0008 0.002 0 000 0 000 40 0.208 0.142 0 097 0067 0.046 0032 0.022 0.015 0.011 0.008 0.005 0004 0.001 0.000 0 000 Note The present value OV)factor for N periods and tate r per period s 1-c1 + (rounded) For eaample, he pv fiotarbw10%, 5 years-lr(1 +0.10)5-0621 your fi calculations. Round intermediate 4. The present value payback period of the proposed investment under the assumption t the year. (Note: use the formula at the bottom of Appendix C, Table to calculate present calculations. Round your final answer to 2 decimal places.) 5. The internal rate of return (IRR). (Do not round intermediate calculations. Round your 6. The modified internal rate of return (MIRR). (Do not round intermediate calculations. place.) (In conjunction with this question, you might want to consult either of the following Excel.) oints Skipped 1. Unadjusted payback period 2a. ARR based on initial investment 2b. ARR based on average investment 3. NPV 4. Present value payback period 5. Internal rate of return (IRR) 6. Modified internal rate of return (MIRR) years years