192. What is the annual net after-tax cash inflow per year?

a.$31,294 d. $26,776
b.$8,000 e. $26,76
c.$18,776

ARR, Payback, NPV & IRR

Questions 118 through 121 are based on the following information.
Don Adams Breweries is considering an expansion project with an investment of $1,500,000. The equipment will be
depreciated to zero salvage value on a straight-line basis over 5 years. The expansion will produce incremental
operating revenue of $400,000 annually for 5 years. The company's opportunity cost of capital is 12%. Ignore taxes.

193. What is the payback period of the project?

A. 2 years. C. 3.75 years.
B. 2.14 years. D. 5 years.

194. What is the book (accounting) rate of return of the investment?

A. 6.67% C. 16.67%
B. 13.33% D. 26.67%

195. What is the NPV of the investment?

A. $0 C. - $116,000
B. - $58,000 D. $1,442,000

196. What is the IRR of the investment?

A. 10.43% C. 16.32%
B. 12.68% D. 19.17%