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If you have the following information about ice-cream manufacturing unit: Year Net Returns Discount rate 10% 0 -1700 1 1,700- 1 1000 0.909 909 2

  1. If you have the following information about ice-cream manufacturing unit:

Year

Net Returns

Discount rate 10%

0

-1700

1

1,700-

1

1000

0.909

909

2

1000

0.826

826

3

-800

0.751

601-

4

1200

0.683

820

5

-300

0.621

186-

6

1350

0.564

761

7

-750

0.513

385-

8

-450

0.467

210-

9

-200

0.424

85-

10

900

0.386

347

Calculate

  1. Discounted Payback period
  2. IRR and if the hurdle rate = 25%, shall we accept the project or not ? Why ?
  3. NPV
  4. Discounted Average rate of returns

e) Net Average Rate of Return

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