Do you know how to complete question four?

Name 4) What are the Average Annual Rates of Return of each investment? Remember on Jan 1 of Year 1, the value of the investment is the initial cost. You must remove annual depreciation to get the value on Dec 31. Jan 1 of Year 2 is the same as the value on Dec 31 of the year prior and so on. Round to the nearest dollar for the table and nearest tenth for the percentoge. Investment A Investment B After- Tax Benefits Value Jan 1 Value Dec 31 Average Annual Value After- Tax Benefits Value Value Jan 1 Dec 31 Average Annual Value Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Year 4 Year 4 Year 5 Year 5 Year 6 Year 6 Year 7 Year 7 Year 8 Average %% Year 9 Average Annual Rate of Return: Which investment would TOM's choose? Year 10 Average: % Average Annual Rate of Return: 5) What is the Equivalent Annual Cost of each investment to TOM's Tomatoes and Herbs, LLC? Investment A: Investment B: TAR Name: Module 11 Assignment. Answer the following questions by filling in the blanks and making the appropriate calculations. Round to the nearest dollar, unless otherwise noted. Assume the following information for all of the questions in this assignment. TOM's Tomatoes and Herbs, LLC is considering investing in two alternative projects to improve the processing and packaging of TOM's Old World Spaghetti Sauce. Investment A has a lifespan of 10 years and initial costs of $12,000. Investment B has a lifespan of 7 years and initial costs of $15,000. TOM's Tomatoes and Herbs, LLC assumes a 6 percent discount rate on potential investments Investment A Projected After Tax Benefits per Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Investment B Projected After-Tax Benefits per Year Year 1 Year 2 Year 3 Year 4 Years Year 6 Year 7 $4,000 $4,000 $3,000 $3,000 $2,000 $2,000 $2,000 1)What is the Payback period of each potential investment by TOM's Tomatoes and Herbs, LLC? Round to the nearest tenth Investment A: Investment B: 2) If TOM's Tomatoes and Herbs, LLC has a required Payback period of 3 years, which project would be chosen and why? 3) Calculate annual depreciation for each investment using the straight line depreciation method. The salvage value for Investment A is $2,000 and for Investment B, the salvage value is $1,000 Annual Depreciation for Investment A Annual Depreciation for Investment B Name 4) What are the Average Annual Rates of Return of each investment? Remember on Jan 1 of Year 1, the value of the investment is the initial cost. You must remove annual depreciation to get the value on Dec 31. Jan 1 of Year 2 is the same as the value on Dec 31 of the year prior and so on. Round to the nearest dollar for the table and nearest tenth for the percentage Investment B Investment A After Value Tax Value Dec Benefits Jan 1 31 Average Annual Value After- Tax Value Benefits Jan 1 Value Dec 31 Average Annual Value Year 1 Year 1 Year 2 Year 2 Year Year 3 Year 4 Year 4 Year 5 Year 5 Year 6 Year 6 Year 7 Year 7 Year 8 Average: Year 9 Average Annual Rate of Return: % Year 10 Which investment would TOM's choose? Average Average Annual Rate of Return: % 5) What is the Equivalent Annual Cost of each investment to TOM's Tomatoes and Herbs, LLC? Investment Investment B