Anna's Bakery plans to purchase a new oven for its store. The oven has an...
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Accounting
Anna'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 Assume on a straight-line basis for tax purposes using the initial investment in the oven and its estimated torminal disposal value. Assume all cash is t amounts ( (88,000) whole dollar.) Annual cash flows from operations s 36,000 s 36,000 $ 36,000 36,000 8,000 The n(excluding the depreciation effect) 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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