Prepare the Cash Flow Statement based on following information Basic Information: Sales: Year 1 Nil Year 2

Prepare the Cash Flow Statement based on following information 

Transcribed Image Text:

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. 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.

Answer rating: 100% (QA)

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 the full answer