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The management of Nadia Investors has to make a choice between two projects: Project Intensive and Project Primary. Each project will require an initial investment of R2 500 000. INFORMATION Year 1 2 3 4 5 Project Intensive Net profits R 80 000 180 000 120 000 220 000 50 000 Project Primary Net profits R 130 000 130 000 130 000 130 000 130 000 A scrap value of R100 000 is expected for Project Intensive. Depreciation is calculated on the straightline basis. The required rate of return is 15%. REQUIRED: Use the information provided above to calculate the following: 3.1 Payback Period for Project Intensive (answer in years, months and days). 3.2 Calculate Accounting rate of return for Project Primary (answer in two decimal places). 3.3 Net Present Value for Project Intensive. 3.4 Internal Rate of Return for Project Primary using interpolation (answer in two decimal places.

The management of Nadia Investors has to make a choice between two projects: Project Intensive and Project Primary. Each project will require an initial investment of R2 500 000. INFORMATION Year 1 2 3 4 5 Project Intensive Net profits R 80 000 180 000 120 000 220 000 50 000 Project Primary Net profits R 130 000 130 000 130 000 130 000 130 000 A scrap value of R100 000 is expected for Project Intensive. Depreciation is calculated on the straightline basis. The required rate of return is 15%. REQUIRED: Use the information provided above to calculate the following: 3.1 Payback Period for Project Intensive (answer in years, months and days). 3.2 Calculate Accounting rate of return for Project Primary (answer in two decimal places). 3.3 Net Present Value for Project Intensive. 3.4 Internal Rate of Return for Project Primary using interpolation (answer in two decimal places.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 10E: Roberts Company is considering an investment in equipment that is capable of producing more...
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 Can I please have the answers in these format  : payback period = investement 

                                                                                                            net annual inflow

ARR = Average annual profit  x 100

           Average investment        1

 

can I have the answers in these type of format

The management of Nadia Investors has to make a choice between two projects: Project Intensive and Project Primary. Each project will require an initial investment of R2 500 000. INFORMATION Year 1 2 4 LO 5 Project Intensive Net profits R 80 000 180 000 000 220 000 50 000 Project Primary Net profits R 130 000 130 000 0 000 130 000 130 000 A scrap value of R100 000 is expected for Project Intensive. Depreciation is calculated on the straightline basis. The required rate of return is 15%. REQUIRED: Use the information provided above to calculate the following: 3.1 Payback Period for Project Intensive (answer in years, months and days). 3.2 Calculate Accounting rate of return for Project Primary (answer in two decimal places). 3.3 Net Present Value for Project Intensive. 3.4 Internal Rate of Return for Project Primary using interpolation (answer in two decimal places.
Transcribed Image Text:The management of Nadia Investors has to make a choice between two projects: Project Intensive and Project Primary. Each project will require an initial investment of R2 500 000. INFORMATION Year 1 2 4 LO 5 Project Intensive Net profits R 80 000 180 000 000 220 000 50 000 Project Primary Net profits R 130 000 130 000 0 000 130 000 130 000 A scrap value of R100 000 is expected for Project Intensive. Depreciation is calculated on the straightline basis. The required rate of return is 15%. REQUIRED: Use the information provided above to calculate the following: 3.1 Payback Period for Project Intensive (answer in years, months and days). 3.2 Calculate Accounting rate of return for Project Primary (answer in two decimal places). 3.3 Net Present Value for Project Intensive. 3.4 Internal Rate of Return for Project Primary using interpolation (answer in two decimal places.
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