Question: |' Slugseyr Ltd needs to replace equipment in ve years' time. The estimated replacement cost will be 750,000 Funds for the replacement will be provided

|' Slugseyr Ltd needs to replace equipment|' Slugseyr Ltd needs to replace equipment
|' Slugseyr Ltd needs to replace equipment in ve years' time. The estimated replacement cost will be 750,000 Funds for the replacement will be provided by setting aside ve equal annual sums and investing them at 10% The rst amount will be invested immediately, the last in four years\" time. What is the annual amount to set aside (to the nearest 100)? 0 01700 0 122300 O 197300 O 179900 A project has an initial cash outow followed by three annual positive cash inows and has a payback period of two years. What is the validity of the following statements? (1} The project always has a unique internal rate of return (2} If the internal rate of return is less than the cost of capital then the project has a positive NPV at the cost of capital 0 {1) False; {2} False O {11True:{2} False O {11True:{2} True O {1} False: {2} True

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