need help with requirements one and two

E21-29 (similar to) A Question Help Anna'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. Anna's Bakery has a 14% after-tax required rate of return and a 35% 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. E: (Click the icon to view the estimated cash flows for the oven.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table 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. Round intermediary calculations and your final answer to the nearest whole dollar.) The net present value is $ 9,974 b. Payback period. (Round your answer to two decimal places.) The payback period in years is 3.04 Question Viewer Requirement 1. Calculate () met present value. (b) payback period, and internal rate of return Net present value. (Usectors to three decimal places, Xxxx. Round The representa 3.074 Requirements b. Payteck period. Round your answer to two decimal places.) The payback period in years is 1. Calculate(a) ne present value) payback period, ande) internal rate of return 2. Calculate accrual accounting rate of retum based on retinal investment Done Ich Year 3 Year Reference 0.781 0.062 Present Value of $1 Periods 2% 4% Period 1 0.980 0.962 Period 20.961 0.925 Period 3 0.942 0.889 Period 4 0.924 0.855 Period 5 0.906 0.822 Period 6 0.888 0.790 Period 7 0.871 0.760 Period 8 0.853 0.731 Period 9 0.837 0.703 Period 10 0.820 0.676 Period 11 0.804 0.650 Period 12 0.788 0.625 Period 13 0.773 0.601 Period 14 0.758 0.577 Period 15 0.743 0.555 Period 16 0.728 0.534 Perid 17 0.714 0.513 Period 18 0.700 0.494 Period 19 0.686 0.475 Period 20 0.673 0.456 Period 21 0.660 0.439 Period 22 0.847 0.422 Period 23 0.634 0.406 Period 24 0.622 0.390 Period 25 0.610 0.375 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 0.394 0.371 0.350 0.331 0.312 0.294 0.278 0.262 0.247 0.233 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 0.199 0.184 0.170 0.158 0.146 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.135 0.123 0.112 0.102 0.092 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.206 0.183 0.163 0.146 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.064 0.056 0.049 0.043 0.038 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.044 0.038 0.033 0.028 0.024 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.071 0.060 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 20% 22% 0.833 0.820 0.694 0.672 0.579 0.551 0.482 0.451 0.402 0.370 0.335 0.303 0.279 0.249 0.233 0.204 0.194 0.167 0.162 0.137 0.135 0.112 0.112 0.092 0.093 0.075 0.078 0.062 0.065 0.051 0.054 0.042 0.045 0.034 0.038 0.028 0.031 0.023 0.026 0.019 0.022 0.015 0.018 0.013 0.015 0.010 0.013 0.008 0.010 0.007 24% 0.806 0.650 0.524 0.423 0.341 0.275 0.222 0.179 0.144 0.116 0.094 0.076 0.061 0.049 0.040 0.032 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 26% 0.794 0.630 0.500 0.397 0.315 0.250 0.198 0.157 0.125 0.099 0.079 0.062 0.050 0.039 0.031 0.025 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 28% 30% 32% 40% Periods 0.769 0.758 0.714 Period 1 0.610 0.592 0.574 0.510 Period 2 0.477 0.455 0.435 0.364 Period 3 0.373 0.350 0.329 0.260 Period 4 0.291 0.269 0.250 0.186 Period 5 0.227 0.207 0.189 0.133 Period 6 0.178 0.159 0.143 0.095 Period 7 0.139 0.123 0.108 0.068 Period 8 0.108 0.094 0.082 0.048 Period 9 0.085 0.073 0.035 Period 10 0.066 0.056 0.047 0.025 Period 11 0.052 0.043 0.036 0.018 Period 12 0.040 0.033 0.027 0.013 Period 13 0.032 0.025 0.021 0.009 Period 14 0.025 0.020 0.016 0.006 Period 15 0.019 0.015 0.012 0.005 Period 16 0.015 0.012 0.009 0.003 Period 17 0.012 0.009 0.007 0.002 Period 18 0.009 0.007 0.005 0.002 Period 19 0.007 0.005 0.004 0.001 Period 20 0.006 0.004 0.003 0.001 Period 21 0.004 0.003 0.002 0.001 Period 22 0.003 0.002 0.002 0.000 Period 23 0.003 0.002 0.001 0.000 Period 24 0.002 0.001 0.001 0.000 Period 25 Print Done i Reference 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 Present Value of Annuity of $1.00 in Arrears Periods 2% Period 1 0.980 0.962 0.943 0.926 Period 2 1.942 1.886 1.833 1.783 Period 3 2.884 2.775 2.673 2.577 Period 4 3.808 3.630 3.465 3.312 Period 4.713 4.452 4.212 3.993 Period 6 5.601 5.242 4.917 4.623 Period 7 6.472 6.002 5.582 5.206 Period & 7325 6.733 6.210 5.747 Period 9 8.162 7.435 6.802 6.247 Period 10 8.983 8.111 7.360 6.710 Period 11 9.787 8.760 7.887 7.139 Period 12 10.575 9.385 8.384 7.536 Period 13 11.348 9.986 8.853 7.904 Period 14 12.106 10.563 9.295 8.244 Period 15 12 849 11.118 9.712 8.559 Period 16 13.578 11.652 10.106 8.851 Period 17 14 292 12.166 10.477 9.122 Period 18 14.992 12.659 10.828 9.372 Period 19 15.678 13.134 11.158 9.604 Period 20 16.351 13.590 11.470 9.818 Period 21 17.011 14.029 11.764 10.017 Period 22 17.658 14.451 12.042 10.201 Period 23 18 292 14.857 12.303 10.371 Period 24 18.914 15.247 12.550 10.529 Period 25 19.523 15.622 12.783 10.675 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 8.649 8.772 8.883 8.985 9.077 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7.250 7.366 7.469 7.562 7.645 7.718 7.784 7.843 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 6.687 6.743 6.792 6.835 6.873 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4,344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5,818 5.877 5.929 5.973 6.011 6.044 6.073 6.097 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4843 4.870 4.891 4.909 4.925 4.937 4.948 22% 0.820 1.492 2.042 2.494 2.864 3.167 3.416 3.619 3.786 3.923 4.035 4.127 4203 4.265 4.315 4.357 4.391 4.419 4,442 4.460 4.476 4.488 4.499 4.507 4.514 24% 0.806 1.457 1.981 2.404 2.745 3.020 3.242 3,421 3.566 3.682 3.776 3.851 3.912 3.962 4.001 4.033 4.059 4.080 4,097 4.110 4.121 4.130 4.137 4.143 4.147 26% 28% 0.794 0.781 1.424 1.392 1.923 1.868 2320 2.241 2.635 2.532 2.885 2.759 3,083 2.937 3.241 3.076 3.366 3.184 3.465 3.269 3,543 3.335 3.606 3.387 3.656 3.427 3.695 3.459 3.726 3.483 3.751 3.503 3.771 3.518 3.786 3.529 3.799 3.530 3.808 3.546 3.816 3.551 3.822 3.556 3.827 3.559 3.831 3.562 3.834 3.564 30% 0.769 1.361 1.816 2.166 2.436 2.643 2.802 2.925 3.019 3.092 3.147 3.190 3.223 3.249 3.268 3.283 3.295 3.304 3.311 3.316 3.320 3.323 3.325 3.327 3.329 32% 0.758 1.331 1.766 2.096 2.345 2.534 2.677 2.786 2.868 2.930 2.978 3.013 3.040 3,061 3.076 3.088 3.097 3.104 3.109 3.113 3.116 3.118 3.120 3.121 3.122 40% Periods 0.714 Period 1 1.224 Period 2 1.589 Period 3 1.849 Period 4 2,035 Period 5 2.168 Period 6 2.263 Period 7 2.331 Period 8 2.379 Period 9 2.414 Period 10 2.438 Period 11 2.456 Period 12 2.469 Period 13 2478 Period 14 2484 Period 15 2.489 Period 16 2.492 Period 17 2494 Period 18 2.496 Period 19 2.497 Period 20 2.498 Period 21 2.498 Period 22 2.499 Period 23 2.499 Period 24 2.499 Period 25 Print Done 16% Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 6% 8% 10% 12% 14% Period 1 1.020 1.040 1.060 1.000 1.100 1.120 1.140 1.160 Period 2 1.040 1082 1.124 1.166 1.210 1.254 1.300 1.346 Period 3 1.061 1.125 1.191 1.260 1.331 1.405 1.482 1.561 Period 4 1.082 1.170 1.262 1.360 1.464 1.574 1.689 1.811 Period 5 1.104 1.217 1.338 1.469 1.611 1.762 1.925 2.100 Period 6 1.126 1265 1.419 1.587 1.772 1.974 2.195 2.436 Period 7 1.149 1316 1,504 1.714 1.949 2.211 2.502 2.826 Period 8 1.172 1.369 1,594 1.851 2.144 2.476 2.853 3.278 Period 9 1.195 1.423 1.689 1.999 2.358 2.773 3.252 3.803 Period 10 1219 1.480 1.791 2.159 2.594 3.106 3.707 Period 11 1 243 1.539 1.898 2.332 2.853 3.479 4.226 5.117 Period 12 1.268 1.601 2012 2.518 3.138 3.896 4.818 5.936 Period 13 1.294 1665 2.133 2.720 3.452 4.363 5.492 6.886 Period 14 1.319 1.732 2.261 2.937 3.797 4.887 6.261 7.988 Period 15 1.346 1.801 2.397 3.172 4.177 5.474 7.138 9.266 Period 16 1.373 1.873 2.540 3.426 4.595 6.130 8.137 10.748 Period 17 1.400 1.948 2.693 3.700 5,054 6.866 9.276 12.466 Period 18 1.428 2026 2.854 3.996 5.560 7.690 10.575 14,463 Period 19 1.457 2.107 3.026 4.316 6.116 8,613 12.056 16.777 Period 20 1.486 2.191 3.207 4.661 6.727 9.646 13.743 19.461 Period 21 1.516 2.279 3.400 5,034 7.400 10.804 15.668 22.574 Period 22 1.546 2.370 3.804 5.437 8.140 12.100 17.861 26.186 Period 23 1.577 2.465 3.820 5.871 8.954 13.552 20.362 30.376 Period 24 1.608 2.563 4.049 6.341 9.850 15.179 23.212 35.236 Period 25 1.641 2.666 4.292 6.848 10.835 17.000 26.462 40.874 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4435 5.234 6.176 7.288 8.599 10.147 11.974 14.129 16.672 19.673 23.214 27.393 32.324 38.142 45.000 53.109 62.669 20% 1.200 1.440 1.728 2.074 2.488 2 986 3.583 4.300 5.160 6.192 7430 8.916 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38 338 46.005 56. 206 66.247 79.497 95 396 22% 24% 1.220 1.240 1.488 1.538 1.816 1.907 2.215 2.364 2.703 2.932 3.297 3.635 4.023 4.508 4.908 5.590 5.987 6.931 7305 8.594 8.912 10.657 10.872 13.215 13.264 16.386 16.182 20.319 19.742 25.196 24.086 31 243 29.384 38.741 35,849 48.039 43.736 59.568 53.358 73.864 65,096 91.592 79.418 113.574 96.889 140.831 118.205 174.631 144.210 216.542 26% 1.260 1.588 2.000 2.520 3.176 4.002 5.042 6.353 8.005 10.086 12.708 16.012 20.175 25.421 32.030 40.358 50.851 64,072 80.731 101.721 128.169 161.492 203.480 256.385 323.045 28% 1280 1.638 2.097 2.684 3.436 4 398 5.629 7.206 9.223 11.806 15.112 19.343 24759 31.691 40.565 51.923 66.461 85071 108.890 139.380 178.406 228.360 292.300 374.144 478.905 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 8.157 10.604 13.786 17.922 23.298 30.288 39.374 51.186 66.542 86.504 112.455 146.192 190.050 247.065 321.184 417.539 542.801 705.641 32% 1.320 1.742 2.300 3.036 4.007 5.290 6.983 9.217 12.166 16.060 21.199 27.983 36,937 48.757 64.359 84.954 112.139 148.024 195,391 257 916 340.449 449.393 593.199 783.023 1033.590 40% Periods 1.400 Period 1 1.980 Period 2 2.744 Period 3 3.842 Period 4 5.378 Periods 7.530 Period 6 10.541 Period 7 14.758 Period 8 20.661 Period 9 28.925 Period 10 40.496 Period 11 56.694 Period 12 79.371 Period 13 111.120 Period 14 155.568 Period 15 217.795 Period 16 304.913 Period 17 426.879 Period 18 597 630 Period 19 836,683 Period 20 1171.356 Period 21 1639.898 Period 22 2295,857 Period 23 3214.200 Period 24 4499 880 Period 25 1.000 2.260 3.848 5.848 1.000 2.300 3.990 6.187 9.043 32% 1.000 2.320 4062 6.362 9.398 13.406 18.696 12.750 Compound Amount of Annuity of $1.00 in Arrears" (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 10% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.020 2040 2050 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 Period 10 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 13412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Period 13 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 Period 14 15.974 18.292 21.015 24 215 27.975 32 393 37,581 43.672 50,818 59.196 Period 15 17 293 20.024 23 276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 Period 16 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 87 442 Period 17 20 012 23.098 28.213 33.750 40,545 48.884 79.118 71.673 87,068 105 931 Period 18 21 412 25.645 30.905 37 450 45.599 55.750 68.394 84.141 103.740 128.117 Period 19 22.841 27.671 33.760 41.446 51.150 63.440 78.000 98.603 123.414 154.740 Period 20 24 207 20.778 36.786 45.762 57.275 72052 01.025 115,380 146.628 186.688 Period 21 25.783 31.000 30.993 50423 64,002 81.690 104.768 134.841 174.021 225.026 Period 22 27200 4.248 43.302 55.457 71.403 2.503 120.436 157415 206.345 271.031 Period 23 28.845 36.618 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326 237 Period 24 30422 39.083 50 816 66.765 88.497 118.155 158.659 213.978 289.494 392484 Period 25 32.030 41.646 54.865 73.106 98.347 133 334 181.871 249.214 342.603 471.981 22% 1.000 2.220 3.708 5.524 7.740 10.442 13.740 17.762 22.670 28.657 35.962 44.874 55.746 69.010 85. 192 104.935 129.020 158.406 14.254 237.000 291,347 356.443 436.361 532.750 650.956 1.000 2.240 3.778 5.684 8.048 10.980 14.615 19.123 24.712 31.643 40.238 50.895 84.110 80 496 100.815 126.011 157.253 195.994 244.033 303.001 377465 460.056 582.630 723.461 898.092 11.544 15.546 20.588 26.940 34.945 45.031 57.739 73.751 93.926 119.347 151377 191.735 242 585 306.650 387 30 489.110 617270 778.771 982 251 1238.636 1.000 2.280 3.918 6016 8.700 12.136 16 534 22.163 29.369 38.593 50.398 65.510 84.853 109.612 141.303 181.868 233.791 300 252 385 323 494213 633.500 811.000 1040.358 1332650 1706 803 17.583 23.858 32.015 42 619 56.405 74.327 97.625 127.913 167286 218.472 285.014 371.518 483.973 630.105 820215 1067.280 1388.464 1806.003 2348.803 34.895 47.062 63.122 84.320 112 303 149.240 197.997 262 356 347 309 459.449 607472 802.363 1050.779 1401.220 1850.622 2443 821 3226.844 40% 1.000 2.400 4.360 7.104 10.946 16.324 23.853 34 395 49.153 69.814 98.739 139235 195.929 275 300 386.420 541.988 759.784 1054.697 1491.576 2089.200 2925.889 4097.245 5737.142 6032.990 11247.190 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 10 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Print Done Anna'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. Anna's Bakery has a 14% after-tax required rate of return and a 35% 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.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table 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. Round intermediary calculations and your final answer to the nearest whole dollar.) The net present value is $ 9,974 b. Payback period. (Round your answer to two decimal places.) Data Table The payback period in years is 3.04 A B E F 1 Relevant Cash Flows at End of Each Year Requirements 2 Year 0 Year 1 Year 2 Year 3 Year 4 $ (185,000) 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return. 2. Calculate accrual accounting rate of return based on net initial investment. 3 Initial oven investment Annual cash flows from operations 4 (excluding the depreciation effect) 5 Cash flow from terminal disposal of oven $ 77,000 $ 77,000 $ 77,000 $ 77,000 $ 6,000 Print Done Print Done ? parts remaining Clear All Final Check