Question: calculate: a) Net present value b) payback period c) internal rate of return Kendra's Bakery plans to purchase a new oven for its store. The
Kendra'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 sho n n the table that follo s, with no anticipated change n working capital Kendra s Bakery has an 8% a er tax re ure rate o' retum and a 5% 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 nvestment 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 Euture Value.of $1.table Euture Value of Annuity.of S.1.table Read the requirements Data Table r to the nearest whole dollar) Relevant Cash Flows at End of Each Year s (110,000) ntial oven investment Annual cash flows from operations (excluding the depreciation offect) $ 40,000 $ 40,000S 40,000$ 40,000 Cash flow from terminal disposal of oven S 15,000 Print Done
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