=+Returning to the Top-Spin carbon-fibre machine project, assume that Top-Spin is a not-for-profit organisation and that the expected additional operating cash inflows are $130000 in years 1 to 4 and

$121000 in year 5. Using data from page 704, the net initial investment is $392500 (new machine,

$390000, plus additional working capital, $9000, minus terminal disposal value of old machine,

$6500). All other facts are unchanged: a five-year useful life, no terminal disposal value and an 8%

RRR. Year 5 cash inflows are $130000, which includes a $9000 recovery of working capital.

Required Calculate the following:

1 net present value 2 internal rate of return 3 payback 4 accrual accounting rate of return on net initial investment.