a) Cumi Beauty Shop proposed an expansion that has the following cash flows: Year Cash Flow...
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a) Cumi Beauty Shop proposed an expansion that has the following cash flows: Year Cash Flow 0 -130 1 70 60 35 2 3 Calculate the payback and NPV at a required return of 13%. (8 marks) b) Dahlia Floral Store is looking at a four-year project with a projected net income of RM1,000 in Year 1. RM3,000 in Year 2, RM4,000 in Year 3 and RM7,000 in Year 4. The cost is RM17,000, which will be depreciated straight-line to zero over the four-year life of the project. What is the average accounting return, or AAR? (6 marks) a) Cumi Beauty Shop proposed an expansion that has the following cash flows: Year Cash Flow 0 -130 1 70 60 35 2 3 Calculate the payback and NPV at a required return of 13%. (8 marks) b) Dahlia Floral Store is looking at a four-year project with a projected net income of RM1,000 in Year 1. RM3,000 in Year 2, RM4,000 in Year 3 and RM7,000 in Year 4. The cost is RM17,000, which will be depreciated straight-line to zero over the four-year life of the project. What is the average accounting return, or AAR? (6 marks)
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a Lets calculate the payback period and NPV for Cumi Beauty Shops expansion project at a required re... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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