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Based on the information provided in the proforma statement attached below, compute the Net Present Value, the Internal Rate of Return, the Cash Payback and

Based on the information provided in the proforma statement attached below, compute the Net Present Value, the Internal Rate of Return, the Cash Payback and the Accounting Rate of Return (CO 6). (Hint: Depreciation is not a cash item)

Acme International
Proforma Income Statements
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Sales revenue $580,000.00 $609,000.00 $639,400.00 $671,000.00 $745,500.00 $782,000.00
Less: Operating expenses $320,000.00 $336,000.00 $352,800.00 $370,400.00 $389,000.00 $408,500.00
Less: Depreciation expense $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00
Net income $200,000.00 $213,000.00 $226,600.00 $240,600.00 $296,500.00 $313,500.00
Initial cost of the investment: $600,000.00
Discount rate:

10%

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