I need solve for q 1/2/3 please show me the answers step by step

1236 CHAPTER PROGRESS EXERCISES 5.5 Depreciation, NPV,IRR 1. 150 000 is invested in machinery which depreciates at 8% per annum. How much will hinery be worth in 10 years bythe reducingbalancemethod? a) Derive the formula for the net present value factor (b) The net cash flow for two projects, A and B, is as follows Year Project A -10000 -3000 4000 6000 8000 Project B-5000-2000 1000 3000 5000 (0) Use the net present value criterion to decide which project is the most proftable if discount rate iis used. i) Calculate th IRA, State the conditions for each project to be proftable. 3The net cash flow rotwo projects,A (fast-food) and Btamusements), isasfollows: Year 0 Project A -420 000 -5000 122000 130 000 148 000 150 000 Project B95 000-10000 -120000 200 000 110 000-50 000 (a) Use the net present value criterion to decide which project is the most proftrable ifa discount rate of (i) 6% and (ii) 8% is used. ) Estimate the IRR of each project. Which project would now be considered more profitable 5.5 Annuities, Debt Repayments, Sinking Funds In this section the compound interest problem is extended to funds. The relevant formulae are per annum, but t ( 513) and (5. 14), respectively. annuities, debt repayment and sinking derived on the assumption of annual compounding at a rate of i% y interval using equations hese formulae are easily adapted to compounding over an