Business, 13.07.2021 15:10 kaylinreed7

A. Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year? b. Project B costs $6,000 and will generate after-tax cash inflows of $600 in year one, $1,400 in year two, $2,500 in year three, $3,000 in year four, and $2,500 in year five. What is the payback period (in years) for this investment assuming that the cash inflows occur evenly throughout the year?
c. Project C costs $6,000 and will generate net cash inflows of $3,000 before taxes for five years. The firm uses straight-line depreciation with no salvage value and is subject to a 20% tax rate. What is the payback period?
d. Project D costs $6,000 and will generate sales of $5,200 each year for five years. The cash expenditures will be $2,100 per year. The firm uses straight-line depreciation with an estimated salvage value of $650 and has a tax rate of 20%.
1. What is the book rate of return based on the original investment?
2. What is the book rate of return based on the average book value?

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A. Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five yea...

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