Problem $12-49($Algo$)$ Basic Capital Budgeting Techniques; No Taxes, Uniform Net Cash Inflows; Spreadsheets $[$LO $12-4,12-6]$

Bob Jensen Incorporated purchased a $$550,000$ machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all it can manufacture in the next $10$ years. The machine is expected to have a $10-$year useful life with no salvage value. Jensen uses straight$-$line depreciation. The net cash inflow is expected to be $$127,000$ each year for $10$ years. Jensen uses a $12\%$ discount rate in evaluating capital investments. Assume, for simplicity, that MACRS depreciation rules do not apply.

Required:

Using Excel $($including built$-$in functions for NPV$,$ IRR, and MIRR$),$ compute the following for the above$-$referenced investment:

$1.$ The payback period, under the assumption that cash inflows occur evenly throughout the year. $($Do not round intermediate calculations. Round your final answer to $1$ decimal place.$)$

$2.$ The accounting $($book$)$ rate of return based on $($a$)$ initial investment, and $($b$)$ average investment. $($Round your final answers to $1$ decimal place $($i$.$e$.0\mathrm{.}123=12\mathrm{.}3\%).)$

$3.$ The net present value $($NPV$)$ of the proposed investment under the assumption that cash inflows occur at year$-$end. $($Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.$)$

$4.$ The present value payback period, in years, of the proposed investment under the assumption that cash inflows occur evenly throughout the year. $($Note: because of this assumption, the present value calculations will be approximate, not exact.$)$ To calculate present value amounts, use the appropriate factors from Appendix C$,$ Table $1.($Do not round intermediate calculations. Round your final answer to $1$ decimal place.$)$

$5.$ The internal rate of return $($IRR$).($Do not round intermediate calculations. Round your final answer to $1$ decimal place $($i$.$e$.0\mathrm{.}123=12\mathrm{.}3\%).)$

$6.$ The modified internal rate of return $($MIRR$).($Do not round intermediate calculations. Round your final answer to $1$ decimal place $($i$.$e$.0\mathrm{.}123=12\mathrm{.}3\%).)($In conjunction with this requirement, you might want to consult either of the following two references: MIRR Function and$/$or IRR in Excel.$)$