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please help me with these questions ASAP Q5. A company is considering an investment in an item of equipment costing K8,000. The equipment would attract

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Q5. A company is considering an investment in an item of equipment costing K8,000. The equipment would attract a 25% annual writing down allowance. The operating cash flows are forecast as: Year 1 K3000 Year 2 K4000 Year 3 K2000 The estimates do not allow for the investment of K2500 in working capital that would be required. The project is expected to have a three-year life, at the end of which the equipment would have a sell-off value of K5000 at the end of year 3. The rate of tax on profits is 30%. The company's cost of capital is 10%. PV factors for the 3 years is 0.909, 0.826, 0.751 in year 1,2 and 3 respectively. Find (a) The payback period. (b) The discounted payback period (c) The NPV (d) The IRR (e) The PI Q6. John has just won a state lottery paying K50,000 a year for 20 years, he is to receive his first payment year from now. The state advertises this as a million kwacha lottery because he will be getting K50,000 multiplied by 20 = K1 million. If the interest rate is 8%, (a) What is the true value of the lottery? (b) If John is to be paid K50,000 at an increasing rate of 5% a year until he gets old, what is the true value of his income before he becoming old

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