Question: This is a cost accounting problem, please show all work. New equipment purchase, income taxes. Ella's Bakery plans to purchase a new oven for its
This is a cost accounting problem, please show all work.

New equipment purchase, income taxes. Ella'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 shown in the table that follows, with no anticipated change in working capital. Ella's Bakery has a 14% after-tax required rate of return and a 35% 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 investment amounts. Home Insert Page Layout . B F Formulas Data Review View C D E Relevant Cash Flows at End of Each Year 0 1 2 3 / ($186,000) 4 2 3 Initial oven investment |Annual cash flow from operations 4 l(excluding the depreciation effect) 5 Cash flow from terminal disposal of oven $77,000 $77,000 $77,000 $77,000 $ 6,000 Required: 1. Calculate (a) net present value, (b) payback period, and (c) internal rate of return. 2. Calculate accrual accounting rate of return based on net initial investment
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