4. Capital expenditure of a new investment project is $ 120,000,000; the expected annual net cash flows generated from the investment are given below. Suppose that the companys cost of capital is 10%, calculate and comment on the accounting rate of return, internal rate of return, and discounted payback period of the project.

Years Cash flows($000) DF (10%)

1 40,000 0.909

2 42,000 0.826

3 50,000 0.751

4 52,000 0.683

5 55,000 0.621

SV 60,000 0.565