Google Limited is estimating 9. a new 3 years project at Of 30 million which is...

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Google Limited is estimating 9. a new 3 years project at Of 30 million which is expected/prepared to result increase in soles revenue of M$ 20 million in the first year. Ns 25 million in the second year and NS 15 million. estimates 60% of revenue in the thid year. The Company to be operating casts which are expected to increase 2% per annum from the second year (5% of operating cast is depreciation). The company will need to invest NS 4 million to working capital at the begining of the project will be recorded at the end lifespan. The interest can e increase of the projects can expect to dispose of the project at the end of its lifespan for N$12 million The cost of capital and tax rate are 12% and 28% respectively Required 4.1 What is the projects NPV? 4.2 klhat is the project's Accounting rate of of rate rate of return? (18 marks) Google Limited is estimating 9. a new 3 years project at Of 30 million which is expected/prepared to result increase in soles revenue of M$ 20 million in the first year. Ns 25 million in the second year and NS 15 million. estimates 60% of revenue in the thid year. The Company to be operating casts which are expected to increase 2% per annum from the second year (5% of operating cast is depreciation). The company will need to invest NS 4 million to working capital at the begining of the project will be recorded at the end lifespan. The interest can e increase of the projects can expect to dispose of the project at the end of its lifespan for N$12 million The cost of capital and tax rate are 12% and 28% respectively Required 4.1 What is the projects NPV? 4.2 klhat is the project's Accounting rate of of rate rate of return? (18 marks)

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The image shows a handwritten note describing a threeyear project for a company The project involves financial projections including initial investment expected revenue increases operating costs depre... View the full answer