Question: This question is worth 6 marks. Please show any formules that you are using and calculations The BBC company wants to acquire another company at

 This question is worth 6 marks. Please show any formules that

This question is worth 6 marks. Please show any formules that you are using and calculations The BBC company wants to acquire another company at a cost of $100,000. The new company will add cash flows of $20,000 in year 1. $40,000 in year 2. $30,000 in year 3. $30,000 in year 4 and $40,000 in year 5. Assuming BBC has a discount rate of 10% and a payback requirement of 3.75 years, should the company do the investment according to simple payback, NPV and IRR (prove your answer)

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