Question 15 (5 points) Wilbur is considering investing in a new football team. It is expected that the new team (Warriors) will enjoy annual revenues (accrual based) of $158,000 that will be offset by annual expenses (accrual based) of $98,000 (including depreciation on uniforms and pads). The initial investment in the new team will cost Wilbur $429,000 and it is anticipated the team will be worth $51,000 when Wilbur graduates with his Physical Education degree ten years from now. Calculate the expected annual "ACCOUNTING" rate of return (ARR) for Wilbur's Warriors 24.00% 20.00% 22.00% 23.00% 25.00% Elizabeth is contemplating a capital investment of $96,000. The anticipated cash flows over the project's first 7 years include: YEAR 1 2 3 Expected Annual Expected Annual Cash INFLOWS Cash OUTFLOWS $ 38,000 $ 12,000 $ 33,000 $ 18,000 $ 40,000 $ 22,000 $ 32,000 $ 20,000 $ 38,000 $ 18,000 $ 37,000 $ 12,000 $ 125,000 $ 10,000 5 6 7 Calculate the project's Payback period 4.7 years 5.6 years 2.57 years 5.2 years