3. Given below are the expected cash-flows of a project. In year-0, a machine will be bought at the cost of BDT 5,000,000 and next five years it will generate the following cash-flows. These also include a maintenance cost in Y3 amounting BDT 1,500,000. You are required to: (use discounting factor = 12.25%). (a) Identify one disadvantage of payback period. (b) Calculate the payback period of the project. (c) Explain one advantage of average rate of return (ARR). (d) Calculate the average rate of return (ARR). (e) Explain one advantage of net present value (NPV). (1) Calculate the net present value (NPV). [5] [1] [5] [1] [5] 51 [18] Required data for Question 3, are given below: Cash inflows between YO and Y5 2/2 : Years YO Y1 Y2 Y3 Y3 Y4 Y5 Y5 Cash-flow (5,000,000) 2,000,000 2.000.000 (1,500,000) 1,800,000 1,500,000 1,500,000 500,000 Purchase cost Cash inflow Cash inflow Cash inflow Repairing Cash inflow Cash inflow Salvage value Sala 3. Given below are the expected cash-flows of a project. In year-0, a machine will be bought at the cost of BDT 5,000,000 and next five years it will generate the following cash-flows. These also include a maintenance cost in Y3 amounting BDT 1,500,000. You are required to: (use discounting factor = 12.25%). (a) Identify one disadvantage of payback period. (b) Calculate the payback period of the project. (c) Explain one advantage of average rate of return (ARR). (d) Calculate the average rate of return (ARR). (e) Explain one advantage of net present value (NPV). (1) Calculate the net present value (NPV). [5] [1] [5] [1] [5] 51 [18] Required data for Question 3, are given below: Cash inflows between YO and Y5 2/2 : Years YO Y1 Y2 Y3 Y3 Y4 Y5 Y5 Cash-flow (5,000,000) 2,000,000 2.000.000 (1,500,000) 1,800,000 1,500,000 1,500,000 500,000 Purchase cost Cash inflow Cash inflow Cash inflow Repairing Cash inflow Cash inflow Salvage value Sala