Question: Prepare the Cash Flow Statement based on following information Basic Information: Sales: Year 1 Nil Year 2 RM 40,000 Year 3 -5 RM 50,000 Costs:
Prepare the Cash Flow Statement based on following information
Basic Information: Sales: Year 1 Nil Year 2 RM 40,000 Year 3 -5 RM 50,000 Costs: Fixed cost Year 1-5 RM 5,000 Variable cost 20% of sales Investment RM 20,000 Terminal Value of Investment RM 10,000 Depreciation 10% of initial investment Please prepare the Cash Flow Statement and estimate - (a) Payback Period; (b) Net Present Value (NPV) at 10% discount rate; and (c) Internal Rate of Return for the Project. (d) Profit & Loss Statement, and (e) compute the average profit rate for the Project life.
Step by Step Solution
3.47 Rating (170 Votes )
There are 3 Steps involved in it
QUESTION SUMMARY With the data of sales fixed and variable costs calculate Payback NPV and IRR of the project Solution Initial Investment 20000 Termin... View full answer
Get step-by-step solutions from verified subject matter experts
Study Help