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Annual net profits at a facility are shown in the table below. Total capital for the facility investment is known to be $ 140 000.Linear

Annual net profits at a facility are shown in the table below. Total capital for the facility investment is known to be $ 140 000.Linear as the depreciation method in profitability calculations depreciation will be accepted. Interest type compound interest and cash flows are separated. It indicated. If the minimum acceptable rotation speed is 15%.

a) Net return method,

b) Using the net present value method, investigate whether the investment is profitable or not

Years Net profits Ilyer - 30800 2 20.ooo 3 25.000 4 35.000 5

Years - N Mon 2 3 4 Net profits Blyear 30800 20.000 25.000 35.000 10.000

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