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James Bay Bakers James Bay Bakers is expecting to generate the following from a $777,000 investment: Year 1 2 3 4 5 6 Earnings before
James Bay Bakers James Bay Bakers is expecting to generate the following from a $777,000 investment: Year 1 2 3 4 5 6 Earnings before Amortization and Taxes $157,000 171,000 241,000 239,000 241,000 246,000 Cash flows (after taxes and preferred share dividends) $146,000 154,400 196,400 195.200 196,400 199,400 Additional Information: the asset will be fully depreciating over the six-year time period, using straight-line depreciation, and James Bay Bakers has a 40.00 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) v
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