Part 1: Workout question points) Gena PLC that has amplo espace in manufacturing prefarm fer masszavains prstic berlin is offeral the opportunity to manufacture and supply prefis Best Wale Bellas Company So Gena PLC is oudering the feasibility of the special order by Best Water Bonling Company Addamnal data compiled by Gerla PLC to assessing vinbility of the preso are given as follows: 12020 2021 2012 2023 Kilogram of preforms needed by Best 5.000 OGO 5,500,000 Water Bottling Company 6.000.000 6.600 Selling price per kilogram of preform Br 1.50 Br Brl 60 Bro Variable manufacturing costs per Br 0.90 Br 1.00 Br LIS kilogram of preform (all payable in cash) Fixed manufacturing costs per year (all B:6000KM Br600,000 Br.000 payable in cash) Administration and utility costs per Br 15,000 B-20,000 B130,000 Br35000 month (all payable in cash) Br 2010 Br 1.25 B00.000 However, Gena PLC assessed that if it should undertake this special order project, some additional facilities that would cost Br 2,400,000 should be acquired. These facilities will be depreciuted over four years on straight line basis with Br 200.000 salvage value Undertaking the project would also decrease regular sales (with contribution margin ratio of 1sa) by Br30.000 K) per month. The increase in current assets and current liabilities due to this project will be 8 Br500,000 and Br200,000 respectively. Gena PLC will obtain a loan of Br 1,600,000 subject to 12% interest rate on the unpaid balance if it accepts this order. The loan is to be repaid in four equal annual installments (at the end of each year). Discount rate of 16", will be appropriate for such environments and Gena PLC is subject to a 30% flat rate income tax. 199000 Required: 2. Defermine the initial investment cost for Geria PLC if it decides to accept the special order project of Best Water Bottling Company ".arin.conthel d. Calculate the Average Accounting Rate of Return of this project and make a decision if the Acceptable AARR is 30%. e. Calculate the discounted payback period for the project and make a decision if the acceptable time limit is 3 years. TYSOUL f. Compute and interpret NPV of the project under consideration. Part 1: Workout question points) Gena PLC that has amplo espace in manufacturing prefarm fer masszavains prstic berlin is offeral the opportunity to manufacture and supply prefis Best Wale Bellas Company So Gena PLC is oudering the feasibility of the special order by Best Water Bonling Company Addamnal data compiled by Gerla PLC to assessing vinbility of the preso are given as follows: 12020 2021 2012 2023 Kilogram of preforms needed by Best 5.000 OGO 5,500,000 Water Bottling Company 6.000.000 6.600 Selling price per kilogram of preform Br 1.50 Br Brl 60 Bro Variable manufacturing costs per Br 0.90 Br 1.00 Br LIS kilogram of preform (all payable in cash) Fixed manufacturing costs per year (all B:6000KM Br600,000 Br.000 payable in cash) Administration and utility costs per Br 15,000 B-20,000 B130,000 Br35000 month (all payable in cash) Br 2010 Br 1.25 B00.000 However, Gena PLC assessed that if it should undertake this special order project, some additional facilities that would cost Br 2,400,000 should be acquired. These facilities will be depreciuted over four years on straight line basis with Br 200.000 salvage value Undertaking the project would also decrease regular sales (with contribution margin ratio of 1sa) by Br30.000 K) per month. The increase in current assets and current liabilities due to this project will be 8 Br500,000 and Br200,000 respectively. Gena PLC will obtain a loan of Br 1,600,000 subject to 12% interest rate on the unpaid balance if it accepts this order. The loan is to be repaid in four equal annual installments (at the end of each year). Discount rate of 16", will be appropriate for such environments and Gena PLC is subject to a 30% flat rate income tax. 199000 Required: 2. Defermine the initial investment cost for Geria PLC if it decides to accept the special order project of Best Water Bottling Company ".arin.conthel d. Calculate the Average Accounting Rate of Return of this project and make a decision if the Acceptable AARR is 30%. e. Calculate the discounted payback period for the project and make a decision if the acceptable time limit is 3 years. TYSOUL f. Compute and interpret NPV of the project under consideration