Question: this question A. Using the following data: Project Cost ($) 100000 Estimated life 5 years Estimated residual value ($) :20000 Annual net cashflow ($) 30000
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A. Using the following data: Project Cost ($) 100000 Estimated life 5 years Estimated residual value ($) :20000 Annual net cashflow ($) 30000 Required rate of return 10% Calculate the: 1. accounting rate of return (5 marks) 2. payback period (5 marks) 3. internal rate of return (5 marks) 4. net present value (5 marks) B. Critically discuss the advantages and disadvantages associated with the use each of these techniques in capital budgeting decisions (10 marks) Attach File
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