Question 1)

Question 2)

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $112,860. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $85,300, and annual cash outflows would increase by $47,300. The company's required rate of return is 12%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15\%.) Internal rate of return on this project is between % and \%. Determine whether this project should be accepted? The project be accepted. Doug's Custom Construction Company is considering three new projects, each requiring an equipment imvestment of $25,960. Each project will last for 3 years and produce the following net annual cash flows. The equipment's salvage value is zero, and Doug uses straight-line depreciation. Doug will not accept any project with a cash payback period over 2 years. Doug's required rate of return is 12%. Click here to view PV table. (a) Compute each project's payback period. [Round answers to 2 decimal places, e.g. 15.25.J AA years years years Which is the most desirable project? The most desirable project based on payback period is Which is the least desirable project? The least desirable project based on payback period is (b) Compute the net present value of each project. (Enter negative amounts using either a negative sign preceding the number e.g. - 45 or parentheses e.g. (45). Round final answers to the nearest whole dollar, e.g. 5.275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)