New equipment purchase, income taxes. Ella'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. Ella'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. Home Insert Page Layout Formulas Data Review View c TD E F Relevant Cash Flows at End of Each Year 2 3 ($186,000 Initial oven investment Annual cash flow from operations (excluding the depreciation effect) Cash flow from terminal disposal of oven $77,000 $77,000 $77,000 $77,000 $ 6,000 5 Required: 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