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Investing in electronics production business which is expected to have huge sales due to restrictions imposed by the Government on the electronic products from abroad.

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Investing in electronics production business which is expected to have huge sales due to restrictions imposed by the Government on the electronic products from abroad. The electronic investment would require an initial investment of TZS 285,000,000/= for purchasing an equipments with five years useful life. The equipment is expected to produce sales of TZS 100,000,000 in year one with an annual increase of 20% for five years. The operating costs are expected to be 40% of the sales of which 60% will be variable expenses and 40% fixed expenses. 20% of fixed expenses are depreciation of the machines and buildings. The required rate of return for such investment is 10% with TZS 100,000,000 salvage value at the end of year 5. Regourd calculate NPV (Net Present value) (ic) and other Relevant calculation to you think is relevant

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