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Question 3 (6 points) Saved Listen John's Autobody is looking at making an investment of...

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Question 3 (6 points) Saved Listen John's Autobody is looking at making an investment of $677.000 in new machinery. They expect to generate the following Earnings Before Amortization and Taxes as well as the following positive, after-tax cash flows: Year Earnings before amortization & taxes Cash flows (after tax) 1 $ 158.000 $ 139 933 2 225.000 180.133 3 237 000 187 333 4 274,000 209 533 5 192 000 160 333 6 218.000 175 033 10) A Compute the Average Accounting Return assuming: the asset will be fully depreciated over the six-year time period, using straight-line depreciation, and John's Autobody has a 40 percent tax rate. (Round your answer to two decimal places leg. 12.341 B. Compute: . the payback period in years, and the internal rate of return for the project Round your answer to two decimal places) C. Compute: net present value of the project if WACC is 12 percent D. Should the project be undertaken and why? Write your answer in the following space

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