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A. Dell group has a proposal to invest $10,000 in a high tech project lasting four years. Depreciation is $2,800, $2,500$ 2,000 and $1,800 in

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A. Dell group has a proposal to invest $10,000 in a high tech project lasting four years. Depreciation is $2,800, $2,500$ 2,000 and $1,800 in years 1, 2, 3 and 4 respectively. The project generates pretax income of $3,000 each year. The pretax income already includes the depreciation expense. Based on Average Accounting Return, will you recommend to accept the project if the tax rate is 30%? B. Will your suggestions differ, if the appraisal is done under Net Present Value method and the cost of capital is 10%? C. It was expected that nominal interest rate would be 10%. But, due to Coronavirus (Covid-19) pandemic situation the inflation rate is expected to further raise by 3.5% which is out of control of Dell Company. How does it impact its decision with regards to the same investment if real cash flows are discounted

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