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Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | |
Q1) A proposed overseas expansion has the following cash flows:- Year Cash Flows Net income 12000 Cost of asset Accumulated 200 0 Depreciation | | 2000 | Required Rate of Return 4000 Required Payback 4 years 50 10% 60 70 200 6000 Cost of Capital 8000 12% The required rate of return of 10%. The required payback is 4 years. Assume we require an average accounting return of 25% Required: 1. Calculate the payback period 2. Calculate the discounted payback Period, 3. Calculate average accounting return, 4. Calculate the NPV 5. Calculate IRR 6. Calculate profitability index
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