Assuming the average profit is $150,000 and the average investment is $300,000. Calculate the The Return on Average Investment (RAI or ARR) The net cash-flow for year 6 only is:

a. Calculate the average profit

b Calculate the average investment

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%