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Sydras bakery plans to purchase a new oven for its store lal net present value. (b) payback period, and (c) internal rate of return A
Sydras bakery plans to purchase a new oven for its store
lal net present value. (b) payback period, and (c) internal rate of return A Data Table - X pr.) A B C D E 1 Relevant Cash Flows at End of Each Year 2 Year 0 Year 1 Year 2 Year 3 Year 4 3 Initial oven investment $ (88,000) Annual cash flows from operations 4 (excluding the depreciation effect) $ 36,000 $ 36,000 $ 36,000 $ 36,000 5 Cash flow from terminal disposal of oven 8,000 dollar. Rd $ Print Done he edit fields and then continue to the next question. o . Question Help Sydra's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years. The estimated pretax cash flows for the oven are as shown in the table that follows, with no anticipated change in working capital. Sydra's Bakery has a 12% after-tax required rate of return and a 40% income tax rate. Assume depreciation is calculated on a straight-line basis for tax purposes using the initial investment in the oven and its estimated terminal disposal value. Assume all cash flows occur at year-end except for initial investment amounts. Click the icon to view the estimated cash flows for the oven.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return a. Net present value. (Use factors to three decimal places, X.XXX. Round intermediary calculations and your final answer to the nearest whole dollar) The net present value is Enter any number in the edit fields and then continue to the next question. Save for Later Sydra's Bakery plans to purchase a new oven for its store. The oven has an estimated useful life of 4 years The estimated pretax cash flows for the oven are as 12% after-tax required rate of return and a 40% income tax rate. Assume depreciation is calculated on a straight-line basis for tax purposes using the initial Invest except for initial investment amounts Click the icon to view the estimated cash flows for the oven) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of retum. a. Net present value. (Use factors to three decimal places, XXXX. Round intermediary calculations and your final answer to the nearest whole dollar) The not present value is b. Payback period. (Round your answer to two decimal places.) The payback period in years is c. Internal rate of return. (Round intermediary calculations to the nearest whole dollar and round the IRR to two decimal places, XXX%) The internal rate of return (IRR) is Requirement 2. Calculate accrual accounting rate of return based on net initial investment. (Round intermediary calculations to the nearest whole dottar Round the fina Based on net initial investment, the accrual accounting rate of retum (AARR) is 9 Enter any number in the edit fields and then continue to the next question Save for Later Type here to search O II 9 Step by Step Solution
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