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what is accounting Answer the following questions using the information below. Gavin Inc. is in need of a computer network for their staff. They receive

what is accounting
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Answer the following questions using the information below. Gavin Inc. is in need of a computer network for their staff. They receive a proposal as below The company uses straight-line depreciation for all capital assets. Required rate of retum =14%; tax rate =30% What are Annual Cash Flows from Operations? For the toolbar, press ALT+F10(PC) or ALT+FN+F10 (Mac). What is the Net Present Value (NPV)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). How long is the Payback Period? QUESTION 61 To compute Internal Rate of Retum (IRR), please answer the below questions one by one: a. What is the computed Present Value Annuity Discount Factor (rounded to 3 decimal places)? b. What are the two neighboning Present Value Annuity Discount Factors from Appendix? c. What are the two discount rates corresponding to your answers in part b? d. Please write down the formula to calcute IRR as well as your final answer: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). What is the computed Accrual Accounting Rate of Return (AARR)? Eor the toolbar nress Al T+F10 (PC) or AAT+FN+F10 (Mac). Combining your answers to NPV and IRR methods, should the management accept or reject the proposal? Why? For the toolbar. press ALT+F10 (PC) or ALT+FN+F10 (Mac). How would your answers to the above answers change if the terminal disposal value (before tax) of the proposal is $1,000 instead of 0 ? a. Will the answer to NPV increase, docrease, or remain the same? b. Will the answer to Payback Period increase, decroase, or reman the same? c. Wil the answer to IRR increase, decrease, or remain the same? d. Wil the answer to AARR increase, decrease, or remain the same? For the toolbar. press ALT+F10 (PC) or ALT+FN+F10 (MaCl

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