Compute the payback period for an investment with the following net cash flows. Note: Round your answer to one decimal place. Net Cash Flows per Year $ (102,000) Cumulative Net Year Initial investment 1. 2. 3. 4. 5. 6. Cash Flows $ (102,000) 10,200 (91,800) 20,200 (71,600) 20,200 (51,400) 23,260 (28,140) 40,200 12,060 40,200 52,260 Payback period years Project A requires a $355,000 initial investment for new machinery with a five-year life and a salvage value of $43,000. Project A is expected to yield annual income of $21,300 per year and net cash flow of $88,750 per year for the next five years. Compute Project A's accounting rate of return. Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return = Accounting rate of return 0 A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and the results follow. Potential Projects Present value of net cash flows (excluding initial investment) Initial investment Project A $ 10,979 Project B $ 8,746 Project C (10,000) (10,000) $ 10,831 (10,000) a. Compute the net present value of each project. b. If the company accepts all positive net present value projects, which of these will it accept? c. If the company can choose only one project, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the net present value of each project. Potential Projects Present value of net cash flows Initial investment Net present value Project A Project B Project C Required A Required B > A $165,600 initial investment will generate the following present values of net cash flows. What is the break-even time for this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Round "Break-even time" answer to 1 decimal place. Year Initial investment 123450 1. 2. 3. 4. 5. Break-even time Cumulative Present Value of Present Value of Net Cash Flows Net Cash Flows $ (165,600) 50,909 46,278 37,137 38,248 34,770 $ (165,600) years (114,691) (68,413) (31,276) 6,972 41,743