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I need help answering requirement 1 please. Bertha's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life
I need help answering requirement 1 please.
Bertha'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 Bertha's Bakery has a 12% after-tax required rate of return and a 31% income tax rate. 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 year-end except for initial investment amounts. (Click the icon to view the estimated cash flows for the oven.) Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Present Value of $1 factors. Click the icon to view the Present Value of Annuity of $1 factors. Click the icon to view the Future Value of Annuity of $1 factors Read the requirements. Requirement 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return. a. Net present value. (Use factors to three decimal places, X.Xxx, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is $ b. Payback period. (Round your answer to two decimal places.) years. c. Internal rate of retum. (Use a trial-and-error approach and straight-line interpolation as necessary. Round all interim calculations to the nearest whole dollar and round the IRR to two decimal placesStep by Step Solution
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