Use the data in Problem 12-48 for Bob Jensen Inc. and MACRS. The asset qualifies as a 5-year property.

Required

Compute the following for the proposed investment:

1. Its payback period (in years) under the assumption that the cash inflows occur evenly throughout the year. Round your answer to 1 decimal place (e.g., 4.341 years = 4.3 years).

2. Its accounting (book) rate of return based on (a) the initial investment, and (b) an average investment (calculated here as a simple average of the 10 average annual book values; for each year, the average book value is the sum of the beginning-of-year and end-of-year book value, divided by two; note: the average book value for each of the last four years is $0). Round both answers to 1 decimal place (e.g., 13.417% = 13.4%).

3. Its estimated net present value (NPV). Use the built-in NPV function in Excel; round your answer to the nearest whole dollar.

4. Its internal rate of return (IRR). Use the built-in IRR function in Excel; round your answer to 1 decimal place (e.g., 5.491% = 5.5%).

5. Its modified internal rate of return (MIRR), rounded to 1 decimal place.