This is my third time posting this question. Can someone please help me answer t

Question

This is my third time posting this question. Can someone please help me answer this question. When I posted it the first time someone gave me 12.94% it was wrong. The second time someone answered my question and gave me 12.90%. Please answer if you are sure your answer is correct. Thank you.

Calculate annual rate of return on investment, and net present value.

Exercise 24-11 (part level submission) BAP Corporation is reviewing an investment proposal. The initial cost and estimates of the book value of the investment at the end of each year, the net cash flows for each year, and the net income for each year are presented in the schedule below. All cash flows are assumed to take place at the end of the year. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investment's life Investment Proposal Initial Cost Annual Cash Flows Annual Net Income and Book Tear Value $105,640 70,680 42,160 21,150 6,130 $44,500 39,700 34,700 29,900 25,200 $9,540 11,180 13,690 14,880 19,070 2 3 4 BAP Corporation uses a 12% target rate of return for new investment proposals ck here to view the factor tab (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Explanation / Answer

1. Cash Payback Period

2. Net Present Value (NPV)

Annual rate of return(ARR)

Annual rate of Return (ARR) = Average profit(net income ) after depreciation & Tax/ Investment

Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Expected Cash Flow            (105,640)     44,500          39,700            34,700 29900 25200 Cumulative Cash Flow            (105,640) (61,140)       (21,440)            13,260            43,160              68,360 Payback Period 2 year + 21440/34700 =2.62 year

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