Please step by step answer. Each of the following scenarios is independent. All cash flows are after-tax cash flows.Required:1. Michael Kimathi has purchased a tractor for $86,250. He expects to receive a net cash flow of $29,500 per year from theinvestment. What is the payback period for Michael? Round your answer to two decimal places.x years2. Bertha Lafferty invested $365,000 in a laundromat. The facility has a 10-year life expectancy with no expected salvage valThe laundromat will produce a net cash flow of $123,000 per year. What is the accounting rate of return? Enter your answea whole percentage value (for example, 16% should be entered as "16" in the answer box).%3. Melannie Bayless has purchased a business building for $322,000. She expects to receive the following cash flows over a 1year period:Year 1: $41,500Year 2: $59,500Year 3-10: $83,600What is the payback period for Melannie? Round your answer to one decimal place.yearsWhat is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should beentered as "16" in the answer box).

Step 1: 1) Given that, Initial investment = $86,250 Cash flow per year = $29,500 Payback period =…

Answered: Each of the following scenarios is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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