Question
Calculate the Expected Net Present Value (ENPV) arising out of the incremental cash flows for the investment. You should also comment on the potential impact
Calculate the Expected Net Present Value (ENPV) arising out of the incremental cash flows for the investment. You should also comment on the potential impact of any risk factors attached to variable costs. In addition, related to your calculations, provide a view on the financial acceptability of the project
b)In order to satisfy Samuel Komakech, calculate the Average Accounting Rate of Return for the investment and briefly comment on your findings. In addition, provide a summary comment with regard to project acceptability, taking account of your calculations in part (a) above.
c)Provide a brief report to Margaret Poulton and Samuel Komakech indicating, with a fulsome rationale, which appraisal method is generally regarded as being the most acceptable. i.e. - Net Present Value or Accounting Rate of Return?
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