Question: QUESTION TWO Below is the given information to enable you answer question two and question three. Description of hypothetical investment table 1 Projects Initial investment

QUESTION TWO Below is the given information to enable you answer

QUESTION TWO Below is the given information to enable you answer question two and question three. Description of hypothetical investment table 1 Projects Initial investment Net cash inflows in the years Costs in years 0 2 6000 3000 2000 B 6000 500 2500 6000 2000 The discount rate is 10% a. Compute the AARR for project A (5 marks) b. Compute the Payback Period in years and months for project C (5 marks) 3 2000 6000 6000 3000 C. Compute the Benefit Cost ratio of project C? (5 marks) d. Compute Net Present value of K500 using 10% discount rate for the period of 5 years? Please show your work clearly? ( 5 marks)

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