PE4 is a code given to the project of the factory number four of ABC Company. The economic life of PE4 is 6 years starting with one establihment year (Y-1) followed by five operating years (Y1,..Y) ). The project will be exempted from the income tax for the first three years of operating, while it will be taxed at a flat rate of 20% for each of the last two operating years. The following are some selected data and information related to PE4: 1. The investment costs which will be incurred during the establishment year including the following items: - The project land, is owned by ABC Company at 6th of October city and will be made available for the project purposes at the start of the establishment year. This land is recorded in the Company's accounting books at L.E 18 million while its fair market value is estimated at L. 24 million. - L.E 15 million Buildings, L.E 5 million Furniture, L.E 23 million Machinery \& Equipment and L.E 7 million Trucks (Depreciable assets will be equally depreciated over the five years of operating). - L.E 16 million for Long-term intangibles that will be equally amortized over the first four operating years. - L.E 10 million for First working capital. 2. A part amounting to 80% of the total investment costs will be financed by an owne capital which will be provided in cash during the establishment year, while th remaining part of the total investment costs will be financed by a 20% interest-loa which ABC Company is managing to obtain by the end of the establishment year. Aft the first operating year, the annual interest rate will be applied to the declini balance of the loan's principal. The loan will be repaid over four yearly eq installments covering the first four years of operating. 3. No credit sales will be allowed and in addition to the current operating cash revenues, it is also expected to collect in cash at the end of the economic life of P net residual value of L.E 6 million without expecting any capital gains or losses PE4 will be sold to other investors. 2. Durting each year of operating, the Aften tax Accounting Net Profits are estimated as follows (in L.E million): 3. During each year of operating, the Current Operating Cash Costs Exclusive or merest will be as follows (in L. E million): Where the Current Operating Cash Costs will be paid in cash when it will ve annuanly incurred. 10. In Y3, the "Pre-tax Accounting Net Profit" will be in L.E million: a. 30 b. 20 (c.) 25 d. 61 11. In Y4, the "Pre-tax Accounting Net Profit" will be in L.E million: a. 30 \begin{tabular}{l|l|l|l} (b. 25 & c. 20 \\ \hline \end{tabular} d. 64 12. In Y2, the "Current Operating Cash Revenues" will be in L.E million: a. 47 b. 48 (c. 58 d. 64 13. In Y3, the "Current Operating Cash Revenues" will be in L.E million: \begin{tabular}{ll|l|l|} \hline & b. 48 & c. 60 & d. 61 \\ \hline 14. By using the direct way to compute the NCF from the project's view, the "Total of \end{tabular} the Cash In-flows in Y5 " will be in L.E million: a. 47 b. 70 c. 61 d. 60 15. In Y, the "Income Tax" will be in L.E million: a. Zero b. 5 d. 4 16. By using the direct way to compute the NCF from the project's view, the "Total of the Cash Out-flows in Y5" will be in L.E million: a. 30 b. 24 d. 25 17. By using the direct way to compute the NCF from the project's view, the "NCF at the end of Y4" will be in L.E million: a. 37 b. 35 c. 38 d. 41 18. By using the direct way to compute the NCF from the project's view, the "Accumulated NCF at the end of Y2 " will be in L.E million: a. 16 b. 51 c. 91 d. (25) 20. The "Accounting Rate of Return (ARR) on the total owned capital of PE4" that will be calculated by adding the previously deducted interest charges to the yearly after-tax accounting net profit, will be: a. 21.8% b. 23.8% c. 29.75% d. 27.25%