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2-Rural poultry farm costs 5,000,000 to set up and has a scrap value of 1,000,000. Its stream of income before depreciation and taxes during the

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2-Rural poultry farm costs 5,000,000 to set up and has a scrap value of 1,000,000. Its stream of income before depreciation and taxes during the first five years is 1,000,000, 1,200,000 1,400,000, 1,600,000 and 2,000,000. If depreciation is 800000 and tax rate is 50%, calculate the accounting rate of return (ARR) 3-Company C is planning to execute a project requiring initial investment of S105 million. The project is expected to generate $25 million per year for 7 years. Calculate the payback period of the project. Company C is planning to undertake another project requiring initial investment of S50 million and is expected to generate S10 million in Year 1, S13 million in Year 2, S16 million in year 3, S19 million in Year 4 and S22 million in Year 5. Calculate the payback value of the project Using payback period, determine which is a better investment, Project A? or Project B? Support your answer with your computation and explain the limitations of using pay period. back 4- plant and machinery investment with cost of S8,320 thousand cash inflows will be S3,411 S4,070, S5,824 and S2,065 at the four years project life. At the end of the project the machinery will be sold for $900 what will be the net present value of the project if the discount rate is 18%

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