Check my wo Answer each independent question, (a) through (e), below a Project A costs $5.500 and will generate annual after-tax net cash inflows of $1,850 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the b. Project B costs $5,500 and will generate after-tax cash inflows of $550 in year 1, $1,250 in year 2, $2.100 in year 3, $2,550 in year 4 and $2.100 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 C costs $5.500 and will generate net cash inflows of $2.500 before taxes for 5 years The firm uses straight-line depreciation with no salvage value and is subject to a 20%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 $5.500 and will generate sales of $4100 each year for 5 years. The cash expenditures will be $1.550 per year. The firm uses straight-line depreciation with an estimated salvage value of S550 and has a tax rate of 20% t) What is the accounting (book) rate of return based on the original nvestment? (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.) e wat is e N V of project A, Assume that the r rm requires a minimum after tax return of 7% on investment. e2 what is the NPV of project B7 Assume that the firm requires a minimum after-tax return of 7% on investment e3 what is the NPV of project C? Assurne that the firm requires a minimum after-tax return of 7% on investment e4, what is the NPV of project D? Assume that the firm requires a minimum afer-tax return of 7% on investment. Payback perod b Payback period rear vears dollar amount.) e What is the NPV of project A? Assume that the firm requires a minimum after tax return of 7% on investment. e2. What is the NPV of project B? Assume that the firm req e3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 7% on investmen e4-What is the NPV of project D? Assume that the firm requires ures a minimum after-tax return of 7% on investment a minimum after-tax return of 7% on investment. a. Payback period b. Payback period C. Payback period d1. Book rate of return d2. Book rate of return e1. NPV of Project A e2. NPV of Project B e3. NPV of Project C e4 NPV of Project D years years years K Prey 9 of 10Next>
