Project 'W' requires the purchase of a machine costing 10000 plus an investment of 4000 in working capital. At the end of the machine's five-year working life, it can be sold for 2000 as scrap. Project W's net cash flows (excluding any of the above information) are forecasted as follows:

Year Annual profit

5000

4000

3000

2000

1000

What is the above project's ROCE and Return on Initial Capital?

This project's ROCE is	Answer 1Choose... 21.42% 33.33% 30% 21.78%
and the return on initial capital is	Answer 2Choose... 21.42% 33.33% 30% 21.78%