The tables below are for reference:

Metro Car Washes, Inc. is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investment's life. Annual Net After-Tax Cash Flows Annual Net Income Year Onmt in Initial Cost and Book Value $105,000 70,000 42,000 21,000 7,000 $50,000 45,000 40,000 35,000 30,000 $15,000 17,000 19,000 21,000 23,000 Management uses a 16 percent after-tax target rate of return for new investment proposals. Required: 1. Compute the project's payback period. Assume that the cash flows in years 1 through 5 occur uniformly throughout each year. (Round your answer to 2 decimal places.) Payback period years 2. Calculate the accounting rate of return on the investment proposal. Base your calculation on the initial cost of the investment. (Round your "Percentage" answer to 2 decimal places (i.e., 1234 should be entered as 12.34).) BEBERRIBERRIBERRIBERRIBERRIERI Accounting rate of return % 3. Compute the proposal's net present value. Net present value Future Value and Present Value Tables Table 1 Future Value of $1.00(1 + 0 Period 4% 6% 8% 10% 12% 14% 20% 1.040 1.082 1.125 1.170 1.217 1.060 1.124 1.191 1.263 1.080 1.166 1.260 1.361 1.469 1.338 1.587 1.714 1.851 1.999 2.159 2.332 1.266 1.316 1.369 1.423 1.480 1.540 1.601 1.665 1.732 1.801 2.191 3.243 4.801 1.419 1.504 1.594 1.690 1.791 1.898 2.012 2.133 2.261 2.397 3.207 5.744 10.286 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.359 2.594 2.853 3.139 3.452 3.798 4.177 6.728 17.450 45.260 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.364 4.887 5.474 9.646 29.960 93.051 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 237.380 1,469.800 2.518 5.492 2.720 2.937 3.172 4.661 10.063 21.725 6.261 7.138 13.743 50.950 188.880 Period 4% 6% 8% 10% 12% 14% 20% Table II Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity) (1 + "-1 1.000 2.060 3.184 4.375 5.637 1.000 2.080 3.246 4.506 5.867 1.000 2.100 3.310 4.641 6.105 1.000 2.140 3.440 4.921 6.610 1.000 2.040 3.122 4.247 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 56.085 96.026 7.336 8.923 10.637 12.488 14.487 6.975 8.394 9.898 11.491 13.181 14.972 16.870 18.882 21.015 23.276 36.778 79.058 154.762 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 75.052 241.330 767.090 7.716 9.487 11.436 13.580 15.938 18.531 21.385 24.523 27.976 31.773 57.276 164.496 442.597 16.646 18.977 21.495 24.215 27.152 45.762 113.283 259.057 1.000 2.220 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.969 32.150 39.580 48.497 59.196 72.035 186.690 1,181.900 7,343.900 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 91.025 356.790 1,342.000 40 Perlot % 6% % 10% 12% 14% 16% 16% 20% 22% 24% 26% 28% 30% 32% 1 2 3 14 5 4329 7 18 9 10 11 12 9 62 1943 926 9 25 1890 857 .889 .840 794 .855 192 735 822 747 .681 790 705 1630 ,760 .665 583 7 31 .627540 7 035 ,592 500 .676 1558 463 ,650 ,527,429 .625 497 3 97 | 1601 .469 368 .577 442 340 555 .417315 .456 312 215 3 08 174 099 .208 .097046 909 ,893 87 ,826797 ,769 751712 675 ,683636 52 21 567519 .54 1507 48 .513 .452 400 467 404 .351 424 361 .308 386 322 1270 350287237 .319 257 208 .20 229 .182 .283 205 160 239 183 10 149 104 .073 .067 .033 .020 022 011 005 .862 .847833 .820 .806 794 781 769 758 743 718 .64 672 50 .630 610 1592 574 4 ,609579 1551 .524 .500 .477455 .435 552 516 482 451 423 397373 350 .476 .437 402 370 .34 35 129 269 250 410 .370 335 303 1275 250 .227 .207 189 354 314 279 198 1178 1159 1143 4305 266 233 204 179 157 139 123 108 263 .225 14 167 14 125 10 .094 .082 227 191 18 137 116 .099 .085 073 .062 .195162 135112 ,04 ,079066056 ,047 168 .137 112 .092 .076 .062 .052 043 1036 145 116 083 075 1061 .050 .040 .033 1027 125 .099 078 062 .049 .039 1032 025 021 108 .084 06 051.00 031025 020016 .051 .037 .026 .019 .014 010 2007 2005 2004 .012 .007 2004 .003 .002 .001 .001 - .003 .001 001 - - - - - - 14 15 20 30 40 Table IV Present Value of Series of $1.00 Cash Flows 11. 1 41 - + m) Period 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 26% 28% 30% 1 3 8 0.962 0.943 0.926 1.886 1.833 1.783 2.775 2.673 2.577 3.630 3.465 3.312 4.452 4.212 3.993 5.242 4.917 4.623 6.002 5.5825.206 6.733 6.210 5.747 7.435 6.8026.247 8.111 7.360 6.710 8.760 7.887 7.139 9.3858.384 7.536 .986 8.853 7.904 10.563 9.295 8.244 11.118 9.712 8.559 13.590 11.470 9.818 17.292 13.765 11.258 19.793 15.046 11.925 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 8.514 9.427 9.779 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 7.469 8.055 8.244 0.877 0.862 1.647 1.605 2.322 2.246 2.914 2.798 3.433 3.274 3.8893.685 4.288 4.039 4.639 4.344 4.946 4.607 5.216 4.833 5.453 5.029 5.660 5.197 5.842 5.342 6.002 5.468 6.142 5.575 6.623 5.929 7.003 6.177 7.105 6.234 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.353 5.517 5.548 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.979 4.997 0.820 1.492 2.042 2.494 2.864 3.167 3.416 3.619 3.786 3.923 4.035 4.127 4.203 4.265 4.315 4.460 4.534 4.544 0.806 1.457 1.981 2.404 2.745 3.020 3.242 3.421 3.566 3.682 3.776 3.851 3.912 3.962 4.001 4.110 4.160 4.166 0.800 1.440 1.952 2.362 2.689 2.951 3.161 3.329 3.463 3.571 3.656 3.725 3.780 3.824 3.859 3.954 3.995 3.999 0.794 1.424 1.923 2.320 2.635 2.885 3.083 3.241 3.366 3.465 3.544 3.606 3.656 3.696 3.726 3.808 3.842 3.846 0.781 1.392 1.868 2.241 2.532 2.759 2.937 3.076 3.184 3.269 3.335 3.387 3.427 3.459 3.483 3.546 3.569 3.571 0.769 1.361 1.816 2.166 2.436 2.643 2.802 2.925 3.019 3.092 3.147 3.190 3.223 3.249 3.268 3.316 3.332 3.333 10 11 9 13 14 15 30 40