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'l'l polnts eBook References Answer each independent question, (a) through (e), below. a. Project A costs $6,500 and will generate annual aftertax net cash inflows

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'l'l polnts eBook References Answer each independent question, (a) through (e), below. a. Project A costs $6,500 and will generate annual aftertax net cash inflows of $2,700 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughoutthe year? (Round your answer to 2 decimal places.) b. Project B costs $6,500 and will generate aftertax cash inows of $900 in year 1, $1,600 in year 2, $2,800 in year 3, $2,800 in year 4, and $2,800 in year 5. Whatis the payback period (in years) for this investment assuming that the cash inows occur evenly throughout the year? (Round your answer to 2 decimal places.) c. Project C costs $6,500 and will generate net cash inflows of $3,000 before taxes for 5 years. The firm uses straightline depreciation with no salvage value and is subject to a 20% tax rate. What is the payback period under the assumption that all cash inows occur evenly throughout the year? {Round your answer to 2 decimal places.) cl. Project D costs $6,500 and will generate sales of $4,600 each year for 5 years. The cash expenditures will be $1,800 per year. The firm uses straight-line depreciation with an estimated salvage value of $800 and has a tax rate of 20%. [1) What is the accounting [book] rate of return based on the original investment? (Round your answer to 2 decimal places.) (2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.) Use the builtin NPvIr function in Excel to calculate the amounts for projects a through d. (Round your answers to the nearest Iwhole dollar amoum.) e1. What is the NPV of project A? Assume that the firm requires a minimum aftertax return of?% on investment. e2. What is the NPV of project 8'? Assume that the rm requires a minimum aftertax return of "1% on investment. e3. What is the NPV of project C? Assume that the rm requires a minimum after-tax return of 7% on investment. e4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 2% on investment. Payback period Payback period c. Payback period d1. Book rate of return d2. Book rate of return e1. NPV of ProjectA e2. NPV of Project El e3. NPV of Project C e4. NPV of Project D

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