Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required: 1. Brad

Question:

Each of the following scenarios is independent. All cash flows are after-tax cash flows.
Required:
1. Brad Blaylock has purchased a tractor for $93,750. He expects to receive a net cash flow of $31,250 per year from the investment. What is the for Jim?
2. Bertha Lafferty invested $360,000 in a laundromat. The facility has a 10-year life expectancy with no expected . The laundromat will produce a net cash flow of $108,000 per year. What is the accounting rate of return?
3. Melannie Bayless has purchased a business building for $336,000. She expects to receive the following cash flows over a 10-year period:
Year 1: $42,000
Year 2: $58,800
Years 3–10: $84,000
What is the for Melannie? What is the accounting rate of return?
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