Question: Task 2 PTGC Ltd is looking at acquiring a new investment. Based on the information supplied by the company, average annual pre - tax income
Task PTGC Ltd is looking at acquiring a new investment. Based on the information supplied by the company, average annual pretax income and expenses for the new investment are as follows: Capital outlay $ Net Profit pabefore depreciation and tax $ Depreciation pa $ Economic life: years Salvage value: Zero Tax rate payable assume paid in year of income: Required rate of return: WACC Risk factor Using different online and software calculators like Microsoft Excel inbuilt formulas, and the present and future value tables, calculate the following: a Net Profit after tax for each year b Annual Cash Flow for each year c Accounting rate of return using total investment d Payback Period e Net Present Value f Internal Rate of Return
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