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James Bay Bakers James Bay Bakers is expecting to generate the following from a $661,000 investment Year 1 2 WNI Earnings before Amortization and Taxes

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James Bay Bakers James Bay Bakers is expecting to generate the following from a $661,000 investment Year 1 2 WNI Earnings before Amortization and Taxes $231,000 187,000 162,000 240,000 157,000 287,000 Cash flows (after taxes and preferred share dividends) $194,750 163,950 146.450 201,050 142,950 233,950 4. 5 6 Additional Information: the asset will be fully depreciating over the six-year time period, using straight-line deprec James Bay Bakers has a 30.00 percent tax rate. Requirements: Compute: 1. Average Account Return 1. the payback period 2. IRR for the project 3. NPV if WACC is 10.00 percent Should the project be undertaken? (Click to select)

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