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Please urgent E Questions The directors of Zhang Limited are considerng three alternative nvestment proposals, details of which are as foliows. Project Project Project Arjun
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E Questions The directors of Zhang Limited are considerng three alternative nvestment proposals, details of which are as foliows. Project Project Project Arjun Bharat Charu Innilial investiment 100 000 125.000 200.000 Net cash inhows year 1 25,000 35 000 60 000 Net cash intlows year 2 25,000 35 000 60,000 25,000 35 000 Net cash inflyas year 3 80,000 Nel cashiriw year 25,000 35.000 30,000 Net cash inflows year 25,000 35 000 30,000 The company depreciates as assets on a straight line bass, assuming a life of five years with no residual value at the end of that time. Required: Using the above information, for each of the projects Arjun and Bharat and Charu. Calculate The Payback Porot 2 The Accounting Rate of Return The Net Present Value using a discount rate of 104 Note Extract of Prosent Value Mabics are on page 12 a) 1. 3 h) State with reasons which ONE of the two investraent projects the directors of Kish Limited should accept d) Discuss why the Net Present Value method of investment appraisal is considered to be thatetically superior to other methods that are found in practice E Questions The directors of Zhang Limited are considerng three alternative nvestment proposals, details of which are as foliows. Project Project Project Arjun Bharat Charu Innilial investiment 100 000 125.000 200.000 Net cash inhows year 1 25,000 35 000 60 000 Net cash intlows year 2 25,000 35 000 60,000 25,000 35 000 Net cash inflyas year 3 80,000 Nel cashiriw year 25,000 35.000 30,000 Net cash inflows year 25,000 35 000 30,000 The company depreciates as assets on a straight line bass, assuming a life of five years with no residual value at the end of that time. Required: Using the above information, for each of the projects Arjun and Bharat and Charu. Calculate The Payback Porot 2 The Accounting Rate of Return The Net Present Value using a discount rate of 104 Note Extract of Prosent Value Mabics are on page 12 a) 1. 3 h) State with reasons which ONE of the two investraent projects the directors of Kish Limited should accept d) Discuss why the Net Present Value method of investment appraisal is considered to be thatetically superior to other methods that are found in practiceStep by Step Solution
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