Company CU is preparing a feasibility study for an investment expansion project coded PE8 and the following data and information are now presented on November 23, 2021: A. PE8 requires one establishment year (Y-1) followed by 6 operating years, where the first five years of operating will be exempted from the income tax, while the sixth year of operating will be taxed at a flat rate of 20%. B. The "After-tax Accounting Current Operating Net Profits or (Losses)" are computed for PE8 as follows (in LE million): c. Ine total of the investment costs will be LE 60 million. Part of this total will be financed during Y1, by a capital owned by Company CU, while the other part will be financed by a loan which shall be obtained at the end of the establishment year (Y-1). This loan will be repaid through four yearly equal installments covering the first four years of operating. The annual interest rate is fixed at 15% and the interest charge at the end of Y1 will be 6 million. D. A depreciation expense of LE 9 million is expected at the end of each year of operating, while an amortization expense of LE 1 million is expected at the end of the first five years of operating. E. The "Accounting Current Operating Cash and Non-cash Costs" are estimated in PE8 as follows F) It is expected to collect in cash at the end of the economic life of PE8, a net residual value of LE 8.8056 million when the project will be sold to other investors. G) No credit sales will be allowed by PE8 and all the "Current Operating Cash Costs" of PE8 will be paid in cash when it will be incurred. 1. The principal of the loan will be in LE million: charges will be in LE million: A. 8.7 B. 7.8 C. 7 D. 8 6. Using the proper avenge of (5) above, the "Accounting Rate of Return" (ARR) on the total investment costs of PE8 will be: A. 31% B. 13% D. 40% 7. Using the proper average of (5) above, the "Accounting Rate of Return" (ARR) on the total owned capital will be: A.31%B.13%C.39% million: A. 10 10. The income tax during the fourth year of operating will be in LE million: A. 2 B. 0.45 C. 2.7 D. Zero 11. The income tax during the last year of operating will be in LE million: A. 2 B. 0.45 C. 2.7 D. Zero 12. During Y1, the "Current Operating Cash Revenue" will be in LE million: D. Zero B. 27.5 C. 43 D. 44 capital will be: A. 31% B. 13% C. 39% 8. The "Pre-tax Accounting Net Profits or (Losses)" in the first two years of operating will be in LE million: LE million: A. 18 B. 19 C. 20 D. 21 15. The NCF from the project's view at the end of Y3 will be in LE million: A.9.5B.25C.35D.54.605616.ThefinalaccumulatedNCFwillbeinLEmillion:C.35D.54.6056 17. The NCF from the project's view at the end of Y2 will be in LE million: A. 26 B. 24.5 C. 25 D. 10 18. The NCF from the project's view at the end of Y1 will be in LE million: 21. The total of the "Cash Out-flows" in each of the first five years of operating will be in LE mill A.18B.25C.18.45D.10 B. 25 22. The NCF from the project's view at the A.19.6065B.25 C. 10 D. 19.6056 23. The pay-back period of the total investment costs in PE8 after Y-1 will exactly be: A. Two operating pears. B. Three operating years. C. Four operating fears. D. Five operating years