You have been given the following data for project NM10 Expected yearly cash inflows are Year Cash inflows (C) 5 000 7 000 10 000 8 000 6 000 20 000 nil 10% Additional notes Initial costs Scrap value Co st of capital Required 1) Using the following investment appraisal techniques, calculate ) Payback Period (PBP) b) Net Present Value (NPV) c) Discounted Payback Period (DPBP) d) Internal Rate of Return (IRR) using formula (5 marks) (5 marks) (5 marks) (5 marks) 2 The following data relates to project NM11 Yearly cash inflows Cost of initial investment Useful life Scrap value 30 000 per year 100 000 5 years 20000 Hint: The cash inflows need to be converted back to accounting profits Calculate the accounting rate of return, based on average accounting profits and the average investment. (5 marks) TOTAL 25 MARKS Additional Notes Extracts from net present tables 10% 0.909 0.826 0.753 0.683 0.621 25% 0.800 0.640 0.512 0.410 0.328 Year