PQR Ltd. plans to invest $1,000,000 in a new project. The project is expected to generate annual cash inflows of $200,000 for 10 years. The project will be depreciated using the straight-line method, and the tax rate is 30%. The discount rate is 12%.
Required:
1.Compute the Annual Depreciation Expense.
2.Calculate the Payback Period (PBP).
3.Calculate the Average Rate of Return (ARR).
4.Calculate the Net Present Value (NPV).
5.Calculate the Internal Rate of Return (IRR).

1.