Capital expenditure of a new investment project is $ 120,000,000 the expected annual net cash flows generated from the investment are given below Suppose that the company's cost of capital is 10%, calculate and comment on the accounting rate of return, internal rate of return, and discounted payback period of the project.

Years       Cash flows ($000)   (DF 10%)

1                   40,000                      0.909

2                  42,000                       0.826

3                 50,000                       0.751

4                52,000                       0.683

5              55,000                       0.621

SV            60,000                       0.565

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Given Information Investment Project cost 12000000... View the full answer