From the following particulars,

$($a$)$ Cash outflow TZS$.100,000$

Annual cash inflow TZS$.25,000$

$($After tax before depreciation$)$

Estimate Life $6$ years

$($b$)$ Cash outflow TZS$.100,000$

Annual cash inflow

$($After tax depreciation$)$

First five years TZS$.20,000$

Next five years TZS$.8,000$

Estimated life $10$ Years

Salvage value TZS$.16,000$

REQUIRED:

i$.$ Payback period.

ii$.$ Post pay$-$back profitability

iii. post pay$-$back profitability index.

$6$ Marks

b$.$ When it comes to profit making project Breakeven point is considered to be the strategic decision to

project manager to maximize profit, Describe and give practical case study in relation to Hotel

construction project $(9$ Marks$)$