Question: Old MathJax webview 3.3 open a daily processing centre. He plans to buy an equipment costing ,000. Bill expects the after-tax cash inflows to be
Old MathJax webview


3.3 open a daily processing centre. He plans to buy an equipment costing ,000. Bill expects the after-tax cash inflows to be Kshs.1, 500,000 annually for 8 he plans to scrap the equipment and retire. ne project's regular payback period (4 marks) e required return is 10%. What is the project's NPV?( 5 marks) 2 required return is 10%. What is the project's Cost benefit ratio? (4 marks) e accepted? Explain (2 marks) 3200,000 3.3 Bill plans to open a daily processing centre. He plans to buy an equipment Kshs.5,000,000. Bill expects the after-tax cash inflows to be Kshs.1, 500,00 after which he plans to scrap the equipment and retire. Calculate the project's regular payback period (4 marks) Assume the required return is 10%. What is the project's NPV?( 5 mark. Assume the required return is 10%. What is the project's Cost benefit ra Should it be accepted? Explain (2 marks)
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