QUESTION 58 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 Proposal Initial after-tax Investment in equipment $102,000 Annual cash increase in operations Year 1 (before-tax) 60.000 Year 2 (before-tax) 60,000 Year 3 (before tax) 60,000 Terminal disposal value 0 Estimated life 3 years The company uses straight-line depreciation for all capital assets Required rate of retuma 14% fax rate : 30% What are Annual Cash Flows from Operations? For the toolbar press ALT F10 (PC) or ALT FN+F10 (Mac). B IUS Paragraph Arial 10pt 10 95 , EBA BB 2 2 0 (1) C QUESTION 59 What is the Net Present Value (NPV) For the toolbar, press ALT+F10 (PO) ON ALT+FN+F10 (Mac). B I U S Paragraph Arial N 10pt TT 1992 Bee FX + QUESTION 60 How long is the Payback Period? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial V T 99 22 e