a. Calculate the average profit

b. Calculate the average investment

c. Assuming the average profit is $150,000 and the average investment is $300,000. Calculate the The Return on Average Investment (RAI or ARR)

d. The net cash-flow for year 6 only is

Rookee Cattle is considering an expansion plan. The following information is given: Initial Investment Outlay Operating annual cash inflows Operating annual cash outflows Annual Depreciation Estimated Life (years) Estimated residual value Required rate of return Expansion Plan $800,000 $400,000 $200,000 $100,000 6 $200,000 8%