Question 3 (a) Given the following data: (b) Present investment required Net Present Value Annual cash...

 

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Question 3 (a) Given the following data: (b) Present investment required Net Present Value Annual cash flows Discount rate Life of the project RM12,000 RM430 RM??? 12% 10 years Based on the data given, calculate the annual cash flows of the project. BI (5 marks) 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) V FIN2102 (F) / Page 4 of 5 25°C A (8) & 4) ENG C 02/C Question 3 (a) Given the following data: (b) Present investment required Net Present Value Annual cash flows Discount rate Life of the project RM12,000 RM430 RM??? 12% 10 years Based on the data given, calculate the annual cash flows of the project. BI (5 marks) 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) V FIN2102 (F) / Page 4 of 5 25°C A (8) & 4) ENG C 02/C

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a NPV Present Value of Cash inflowsPresent Value of Cash outflo... View the full answer