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a) Name five investment decision tools used and briefly state their advantages and disadvantages. Also state whether they adjust for time value of money, adjusts

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a) Name five investment decision tools used and briefly state their advantages and disadvantages. Also state whether they adjust for time value of money, adjusts for risks and cerates value. (10 marks) b) Revenue generated by a company product in each of the next five years are forecast as follows: (10 Marks) Year Revenues 1 $40,000 2 $30,000 3 $20,000 4 $10,000 Thereafter $0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate of $50,000 in plant and equipment. a) What is the initial investment in the product? b) If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight line depreciation, and the firm's tax rate is 40%, what are the project cash flows in each year? c) If the opportunity cost of capital is 10% what is project NPV

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