Homework: Chapter 22 Homework Sa core: 0 of 1 pt 3 of 4 (4 complete) HW Score: 75%, 3 of 4 X E22-29 (book/static) Question Help Jenna's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years. The estimated pretax cash flows for the oven ate as shown in the table that follows, with no anticipated change in working capital, Jenna's Bakery has an 8% after-tax required rate of retum and a 34% income tax rate. Assume depreciation is calculated on a sraight-line basis for tax purposes using the initial investment in the oven and its estimated terminal disposal value. Assume all cash flows occur at year-end except for initial investment amounts Click the icon to view the estimated cash flows for the oven. Present Value of $1 table Pro Read the requirements Data Table Requirement 1. Calculato(a) a. Not prosent value. (Use facto The net present value is s b. Payback period. (Round your B F Relevant Cash Flows at End of Each Year 2 Year 0 Year 1 Year 2 Year 3 Year 4 3 Initial oven investment $70,000) Annual cash flows from operations 4(excluding the depreciation effect) $ 24,000 $ 24.000 $ 24,000 $ 24,000 5 Cash flow from terminal disposal of oven $ 7,000 The payback period in yours is Print Done Enter any number in the edit fields and then click Check Answer 2 para remaining Clear All Check Answer X E22-29 (book/static) Question Help Jenna's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years. The estimated pretax cash flows for the oven are as shown in the table that follows, with no anticipated change in working capital Jenne's Bakery has an 8% after-tax required rate of return and a 34% income tax rato. Assume depreciation is calculated on a straight-line basis for tax purposes using the initial investment in the oven and its estimated terminal disposal value. Assume all cash flows occur at your-ond except for initial investment amounts Click the loon to view the estimated cash fows for the oven) Prosent Value of $1 tatlo Procont Value of Anuty of $1 table Futuro Value of 51 table Fututo Value of Annuity of 31 table Read the requirements Requirement 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of retum a. Not present valuo. (Una fattor to throw decimal piacon, XXXX. Round intermediary calculations and your final onswer to the nearest wholo dollar) The net present value is $5.343 b. Payback period. (Round your answer to two decimal places.) The puyback period in years En nu har in the wind the VA
