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Brian's Auto is looking at making an investment of $ 7 8 4 , 0 0 0 in new machinery They expect to generate the

Brian's Auto is looking at making an investment of $784,000 in new machinery They expect to generate the following Eamings Before Amortization and Taxes as well as the following positive, after-tax cash flows:
\table[[Year,Fs belore amortivation,Cash flows],[(after tax)],[Year,s before amortization,cash flows],[(after tax)],[1,$174,000,5156,667],[2,253,000,204,067],[3,173,000,155,067],[4,274,000,215,657],[5,259,000,207,657],[6,269,000,213,657]]
(a) Compute the Average Accounting Return assuming the asset will be fully depreciated over the six-year time period, using straight-line depreciation, and Brian's Auto has a 40 percent tax rate. (Round your answer to two decimal places (E.g.12.3496)
(b) Compute the payback period in vears, and the internal rate of return for the project
(c) Compute net present value of the project if WACc is 12 percent.
(d) Should the project be undertaken, and why?
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