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can i get the answer ? Question 3 ABC Itd is wondering whether or not to invest in one of three possible projects. The initial

can i get the answer ?
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Question 3 ABC Itd is wondering whether or not to invest in one of three possible projects. The initial investment will be 10,000, and the cost of capital is 10 per cent. There is no scrap value for fixed assets used. Details of the net cash inflows are as follows: Project M N P Year! 3,000 5,000 4,000 Year 2 6,000 5.000 5,000 Year 3 4,000 2,000 3.000 Year 4 1.600 1.000 Year 5 1.400 Required: Using each method on its own, without reference to the other methods, which project should ABC invest in using the following methods (a) Accounting rate of return, using average investment (6 marks) (b) Pay back (6 marks) (c) Net present value (8 marks) (d) Internal rate of retur (IRR) (10 marks) [Total marks 30) The discount factors for 10 per cent for six years are as follows: Year 10.909 Year 20.826 Year 3 0.751 Year 4 0.683 Year 5 0,621 Year 6 0.564

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