Question: Hi, urgently i need help for this question. Answer shared by lecturer as Question 3 (a) 4.02 year (b) 27.56% (c) 68,534.48 (d) 5.44 year
Hi, urgently i need help for this question. Answer shared by lecturer as
Question 3 (a) 4.02 year (b) 27.56% (c) 68,534.48 (d) 5.44 year (e) 1.098 / 1.10 (768,534 700,000) (f) 15.11 %
Pls show the method that gives this answer. Kindly type the methods. NO EXCEL

Bio Sports Facilities is planning to construct Swimming Pools on which has 60 pools to be used at any point of time. The initial investment cost for the pools is RM700,000. It is expected to generate revenue RM3,500 per pool in year 1 and 10% increase for every year from year 2 to 6 . The operating cost per pool is RM1,000 and expected to increase by 10% every year from year 2 to 6 . At year 6 it can cease the operation but there is no salvage value. The cost of capital is expected to be about 12%. Advice whether the project is acceptable or rejected by using the below methods. A. Payback Period Technique (PBP) .(5 Marks) B. Accounting Rate of Return (AROR). (6 Marks) C. Net Present Value Technique (NPV) (6 Marks) D. Discounted Accounting Rate of Return (AROR) (6 Marks) E. Profitability Index (6 Marks) F. Internal Rate of return (6 Marks)
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