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Question 3 (6 points) Listen Brian's Auto is looking at making an investment of 5784,000 in new machinery expect to generate the following Earnings Before

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Question 3 (6 points) Listen Brian's Auto is looking at making an investment of 5784,000 in new machinery expect to generate the following Earnings Before Amortization and Tuves well as the following positive, after tax cash flows: Year Earnings before amortization & taxes Cash flows (after tax) $ 174,000 $ 156,667 204,067 173,000 274,000 259.000 207,667 269,000 213,667 [9] + 2 3 253,000 156,067 216.667 .. 5 6 ... C Paragraph BIU ... Paragraph BIU Required: I A. Compute the Average Accounting Return assuming: the asset will be fully depreciated over the six-year time period, using straight- line depreciation, and Brian's Auto has a 40 percent tax rate. (Round your answer to two decimal places leg. 12.34%)) Write your answer in the following space (add space by hitting the enter key)... *** then move on to the next question. B. Compute: the payback period in years, and the internal.cate of return for the rain V I U Paragraph B. Compute: the payback period in years, and the internal rate of return for the project (Round your answer to two decimal places) I Write your answer in the following space (add space by hitting the enter key... then move on to the next question. C. Compute: net present value of the project if WACC is 12 percent. Write your answer in the following space (add space by hitting the enter key).. ... then move on to the next question D. Should the project be undertaken and why? Write your answer in the following space: I BOTTOM OF THE ANSWER BOX (There are no questions below this sentence.)

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