Question: 'l'l polnts eBook References Answer each independent question, (a) through (e), below. a. Project A costs $6,500 and will generate annual aftertax net cash inflows

 'l'l polnts eBook References Answer each independent question, (a) through (e),

'l'l polnts eBook References Answer each independent question, (a) through (e), below. a. Project A costs $6,500 and will generate annual aftertax net cash inflows of $2,700 for 5 years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughoutthe year? (Round your answer to 2 decimal places.) b. Project B costs $6,500 and will generate aftertax cash inows of $900 in year 1, $1,600 in year 2, $2,800 in year 3, $2,800 in year 4, and $2,800 in year 5. Whatis the payback period (in years) for this investment assuming that the cash inows occur evenly throughout the year? (Round your answer to 2 decimal places.) c. Project C costs $6,500 and will generate net cash inflows of $3,000 before taxes for 5 years. The firm uses straightline depreciation with no salvage value and is subject to a 20% tax rate. What is the payback period under the assumption that all cash inows occur evenly throughout the year? {Round your answer to 2 decimal places.) cl. Project D costs $6,500 and will generate sales of $4,600 each year for 5 years. The cash expenditures will be $1,800 per year. The firm uses straight-line depreciation with an estimated salvage value of $800 and has a tax rate of 20%. [1) What is the accounting [book] rate of return based on the original investment? (Round your answer to 2 decimal places.) (2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.) Use the builtin NPvIr function in Excel to calculate the amounts for projects a through d. (Round your answers to the nearest Iwhole dollar amoum.) e1. What is the NPV of project A? Assume that the firm requires a minimum aftertax return of?% on investment. e2. What is the NPV of project 8'? Assume that the rm requires a minimum aftertax return of "1% on investment. e3. What is the NPV of project C? Assume that the rm requires a minimum after-tax return of 7% on investment. e4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 2% on investment. Payback period Payback period c. Payback period d1. Book rate of return d2. Book rate of return e1. NPV of ProjectA e2. NPV of Project El e3. NPV of Project C e4. NPV of Project D

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