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please complete questions S12-10, S12-11,S12-12 d. Explain your S12-10 Compute...

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Accounting

please complete questions S12-10, S12-11,
S12-12
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d. Explain your S12-10 Compute NPV-equal net cash inflows (Learning Objective 4) Woodsy Music is considering investing $625,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows $90,000 per year for the next nine years. Assuming that Woodsy Music uses an 8% rate, what is the net present value (NPV) of the studio investment? Is this a favorable investment? S12-11 Compute IRR-equal net cash inflows (Learning Objective 4) Refer to Woodsy Music in S12-10. What is the approximate internal rate of return (IRR) of the studio investment? S12-12 Compute NPV-unequal net cash inflows (Learning Objective 4) The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $45,500 and have no residual value. Management ex- pects the equipment to result in net cash savings over three years as customers grow ac- customed to using the new technology: $14,000 the first year; $21,000 the second year, $27,000 the third year. Assuming a 14% discount rate, what is the NPV of the kiosk invest- ment? Is this a favorable investment? Why or why not

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