Question
In: Finance
Study the information below and answer the questions that follow: Information Zakiv Limited is considering investing...
Study the information below and answer the questions that follow:
Information
Zakiv Limited is considering investing in a project. The following
information/data is available
for the project:
|
Annual profits (loss): R |
R |
|
Year 1 |
(38 000) |
|
Year 2 |
40 000 |
|
Year 3 |
(7 000) |
|
Year 4 |
25 000 |
|
Year 5 |
34 000 |
|
Initial Cash Investment |
300 000 |
|
Expected useful life 5 years |
5 years |
|
Scrap Value |
20 000 |
The company estimates that its cost of capital is 10%.
Required:
3.1 Calculate the Accounting Rate of Return for the project.
3.2 Calculate the Net Present Value for the project.
Solutions
jeff jeffy answered 6 months agoRelated Solutions
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