Coach You Problem 1 Just Falafs Corporation is reviewing an investment proposal. The initial cost...

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Accounting

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Coach You Problem 1 Just Falafs Corporation is reviewing an investment proposal. The initial cost is $131.250. Estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year are presented in the following schedule. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is assumed to equal its book value. There would be no salvage value at the end of the investment's life. Inunetmant Dinneal Just Falafs Corporation uses an 11% target rate of retum for new investment proposals. Instructions 1. What is the cash payback period for this proposal? 2. What is the annual rate of return for the investment? 3. What is the net present value of the investment

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