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Emma bakery plans to purchasr a new oven for its store.

Question Help Emma'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. Emma's Bakery has a 12% after-tax required rate of return and a 40% income tax rate. Assume depreciation is calculated on a straight-line basis 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 Click the icon to view the estimated cash flows for the oven) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate (a) net present value, (b) payback period and (c) internal rate of return. a. Net present value. (Use factors to three decimal places XXXX Round intermediary calculations and your final answer to the nearest whole dollar) The net present value is Enter any number in the edit fields and then continue to the next question Save for Later Read the requirements LUVA Annuste Requirement 1. Calculate (a) net present value. (b) payback period, and (c) internal rate of return a. Net present value. (Use factors to three decimal places, XXXX Round intermediary calculations and your final answer to the nearest whole dollar) The net present value is b. Payback period (Round your answer to two decimal places) The payback period in years is c. Internal rate of return (Round intermediary calculations to the nearest whole dollar and round the IRR to two decimal places, XXX The internal rate of retur (IRR) is Requirement 2. Calculate accrual accounting rate of return based on net initial investment Roun information to the nearest whole doll Round the final rate foto doce Based on net initial investment the accrual accounting rate of return (AAR) ho nd your final answer to the nearest whole dollar) - x 0 Data Table e IRA B E D A F Relevant Cash Flows at End of Each Year ad inte Year o Year 1 Year 2 Year 3 Year 4 N 188.000) Alnitial oven investment 5 Annual cash flows from operations A excluding the depreciation effect) 5 Cash flow from terminal disposal of oven $ 35,000 36.000 $ 35,000 36.000 $ 8.000 Print Done

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