Question: I REALLY NEED HELP FOR THIS !! IT'S REALLY URGENT !! TASK 3 The directors of RLG VOSTECK PLC are considering an investment in a
TASK 3 The directors of RLG VOSTECK PLC are considering an investment in a new Cleaner's Trolley Project (CTP). The project is estimated to have the following cash flows, and the company has a required rate of return of 15%. Net Cash Flow Year Investment cost 1,900,000 Net cashflow 1,400,000 Net cashflow 1,350,000 Net cashflow 800,000 4 Net cashflow 170,000 Residual value at project end 500,000 0 1 2 3 4 Sheet 4 of 4 Module Code: ACF11203 Multitask Assessment 2 (A) What is the year of payback for the Cleaner's Trolley Project (CTP)? (3marks) (B) Calculate the Accounting Rate of Return for the project. (18 marks) (C) Calculate the Net Present Value of the project. (11 arks) (D)Advise the directors of RLG VOSTECK PLC whether or not they should undertake the project? (2 marks) (E)What are the three major questions that Net Present Value technique of investment appraisal answers? (6 marks)
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