Question: Question 4: Answer the following questions: (12 Marks) 1. Identify one primary strength and one primary weakness for each of the following methods of investment

Question 4: Answer the following questions: (12 Marks)

1. Identify one primary strength and one primary weakness for each of the following methods of investment analysis:

Net present value:

Internal rate of return:

Payback Period:

Average accounting return

2. What is the IRR of the following set of cash flows?

Year cash Flow
0 -26300
1 8400
2 11300
3 16500

(4 Marks) Answer :

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