A Remaining Time: 1 hour, 49 minutes, 25 seconds Question Completion Status Question 1 10 points Alpha construction Company is ensidering the following inwestment. The initial cost is ALD RIS,000. The data below show the projected revenue, operating expers and depreciation expense for each of the years during the life of the investment project Year 1 Year 2 Year 3 Year 4 Year 5 Revenue 91.000 112.000 231,000 140,000 20,000 117,000 25,000 27,000 16,000 Operating 22.000 Expense Depreciation 10,000 Expense 10.000 10,000 10,000 10,000 Required: Calculate Cash Flows for each year. Note: Please copy and paste the below table into the answer section Yeart Year 3 Year 4 Year 5 Net Income Cash Flow (Net income Depreciation Expense) Question Completion Status a Calculate the payback period. Shall investment be accepted if the target payback period is 3 years? Year Cash Flow Cumulative Cash Flow 0 1835.000 1 2 3 5 Should this project be accepted? a Calculate Average Accounting Return (AAR) for the Famous Company, Shall investment be accepted if the target rate of return is 27%? - Average Net Income / Initial Investment Should this project be accepted ? Why Remaining Time: 1 hour, 48 minutes, 5 seconds Question completion Status b. Write any TWO disadvantages of the payback period method and Two disadvantages of the ARR method of appraising investments, Paytrack method ARR method Formula Sheet AS Free Cash Flow Earnings After Thores. Depreciations Payback Period -Target periodicumulative cash flow in target period year/cash flow in following year IRR Average Net Income /Initial Investment PVIF- 17+ PVPV (1. PV-FV/1.1" FVADA(1+RynRT22 R-01 EVAN-RX1 + 7-1. Rf1 + fijn2+ R610 = R1 10 TTT Arial # 3 (12) + T.ES Boo