PROBLEM 3 Given: A project which requires an initial investment of 80K$, shall be operational for 6 years, and is expected to return a profit after tax of 30K$pa., and a cash flow after tax of 40K$pa. During the termination phase the project is expected to make 20K$. Required: Calculate: a) Average rate of return, b) Payback period, c) Net present value d) Profitability index, and e) Internal rate of return PROBLEM 4 Given: Dewar Co. Manufactures two products A and B. Two departments, the Production Dept., and the Finishing Dept., are involved in manufacturing A, and B. The production dept. has a daily capacity of producing either 200 units of A, or 100 units of B; whereas the finishing dept. has a daily capacity of processing either 120 units of A, or 200 units of B. The maximum daily demand for B is 90 units. The UCM for A is 2.00$, and the UCM for B is 2.50$. Required: Calculate: a) How many of each product must they manufacture and sell to maximize their profit; b) The slack values; c) The sensitive region; d) If UCM for B was found to be 3.00$, rather than 2.50$, what would change in our analysis