Question: answer all questions as soon as possible PART 2 ( 20% The net operational cash flows of investment schemes of a Fast Food and Coffee

 answer all questions as soon as possible PART 2 ( 20%

answer all questions as soon as possible

PART 2 ( 20% The net operational cash flows of investment schemes of a Fast Food and Coffee house as follows: Year 0 1 2 3 4 5 Fast Food (000) (82) 20 30 40 40 50 Coffee House (000) (82) 30 30 40 50 30 Given that the residual value for fast food and coffee house are 18,000 and 22,000 respectively while the required rate of return is 12%. A. You are required to calculate, for both schemes, the: (i) Accounting Rate of Return (ii) Payback period (5 Marks ) (5 Marks ) (iii) Critically appraise of the above investment appraisal method (10 Marks)

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