Crossroad corporation is trying to decide whether to invest to automate a production line. if the project is accepted, labor costs will decrease by $165,000 per year. however, other cash operating expenses will increase by $86,000 per year. the equipment will cost $260,000 and is depreciable over 10 years using simplified straight line to a zero salvage value. crossroad will invest $10,000 in net working capital at installation. the firm has a marginal tax rate of 34%. calculate the firm's annual cash flows associated with the new project.

Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 20 years. assume you purchase a bond that costs $25. a. what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. if you purchased the bond for $25 in 2017 at the then current interest rate of .27 percent year, how much would the bond be worth in 2027? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. in 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2037. what annual rate of return will you earn over the last 10 years? (do not