Question: (a) Given the following data: Based on the data given, calculate the annual cash flows of the project. (5 marks) (b) Arthur operates a part-time
(a) Given the following data: Based on the data given, calculate the annual cash flows of the project. (5 marks) (b) Arthur operates a part-time auto repair service. He estimates that a new diagnostic computer system which costs RM7,000 will result in increased cash inflows of RM2,100 in Year 1 , RM3,200 in Year 2, and RM4,000 in Year 3. Calculate the internal rate of return of this investment. (7 marks) (c) Apex Corp. is planning to buy production machinery costing RM100,000. This machinery's expected useful life is five years, with no residual value. Apex uses a discount rate of 10% and has calculated the following data pertaining to the purchase and operation of this machinery: Calculate the payback period of this investment. If Apex sets a cut-off period of 3 years, should this investment be undertaken
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