Detailed Answer please

(xxiii) One year ago, ABC invested in a computer system, costing $18,000. The company depreciates computer systems over 3 years and the written down value of the system is therefore $12,000. Technological advances, however, have made this system obsolete and not fit for purpose and ABC is now considering investing in a new system at a cost of $33,000. In considering this investment, what is the relevant cost? (1 mark) A $15,000 $12,000 C $33.000 B (xxiv) Farquor Inc is considering a project that requires an initial 3,300,000 investment in long-term assets that then generates the following net cash inflows over a 7-year period: I Years '000 1 2 3 4 5 6 7 1,200 750 A B C 700 725 425 250 150 [1 mark] At the end of the 7-year project, the long-term assets will be sold for their scrap value of 500,000. What are the accounting rate of retum (in %) and the payback period (in years) respectively of this proposed investment? 10.5% and 3.90 years 18.2% and 4.90 years 12.5% and 3.25 years [2 marks] Page 9 of 17