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please help Sheridan Corporation is reviewing an imvestment proposal. The initial cost is $106,200. Estimates of the book value of the imvestment at the end
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Sheridan Corporation is reviewing an imvestment proposal. The initial cost is $106,200. Estimates of the book value of the imvestment at the end of each year, the net eash flows for each year, and the net income for each year are presented in the following schedule. Alf cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is assumed to equal its book value. There would be no salvagevalue at the end of the investment's life. Sheridan Corporation uses an 11% target rate of return for new imvestment proposals. Click here to view PV table. (a) What is the cash payback period for this proposal? (Round answer to 2 decimal places, e.s. 10.50.) Cash payback period years What is the annual rate of return for the investment? (Round answer to 2 decimal places, e.3. 10.50\%.) Annual rate of return for the investment \% (c) What is the net present value of the investment? (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses eg (45). Round answer to 0 decimal places, e.g. 125 . For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Step by Step Solution
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