Question: A project is expected to have a cash flow for five years as follows after all expenses and taxes. The fixed capital investment is RO

 A project is expected to have a cash flow for five

A project is expected to have a cash flow for five years as follows after all expenses and taxes. The fixed capital investment is RO 220000 and the working capital investment is one quarter of the fixed capital investment. The salvage value of the project is RO.20000. Find the rate of return using straight line depreciation method. Time (Years) Cashflow (RO) 0-1 40000 1-2 65000 2-3 99000 3-4 140000 4-5 150000

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