Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 3 Isipingo Sweets Ltd is considering the possibility of investing in a new mixer. The following information is extracted from the reports of the
QUESTION 3 Isipingo Sweets Ltd is considering the possibility of investing in a new mixer. The following information is extracted from the reports of the project. Cost of investment Residual value Depreciation method Cost of capital Additional information: Year 234 CAPITAL INVESTMENT DECISIONS 1234 Profit Rand 34 30 000 40 000 60 000 R320 000 Nil Required: Answer the following questions: Straight-line 12% 3.1 Calculate the Accounting rate of return (two decimal places). 32 Calculate the payback period (in years, months and days). Calculate the net present value. Will the project be accepted? Why? Cash flow Rand 110 000 120 000 130 000 140 000 (20 Marks) (4 marks) marks) (8 marks) (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started