Question: Based on the information provided in the proforma statement attached below, compute the Net Present Value, the Internal Rate of Return, the Cash Payback and
Based on the information provided in the proforma statement attached below, compute the Net Present Value, the Internal Rate of Return, the Cash Payback and the Accounting Rate of Return (CO 6). (Hint: Depreciation is not a cash flow)
Acme International Proforma Income Statements Year 1 Sales revenue Less: Operating expenses Less: Depreciation expense Net income Initial cost of the investment: Salvage value at the end of year 6: $580,000.00 $320,000.00 $60,000.00 $200,000.00 Year 2 $609,000.00 $336,000.00 $60,000.00 $213,000.00 $600,000.00 $60,000.00 Year 3 $639,400.00 $352,800.00 $60,000.00 $226,600.00 Year 4 $671,000.00 $370,400.00 $60,000.00 $240,600.00 Year 5 $745,500.00 $389,000.00 $60,000.00 $296,500.00 Year 6 $782,000.00 $408,500.00 $60,000.00 $313,500.00
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