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Question 3 You wea Corporate Finance Manager Regra pica leading operator of domestic We recycling and into seniom London, UK New legislation on arquity and

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Question 3 You wea Corporate Finance Manager Regra pica leading operator of domestic We recycling and into seniom London, UK New legislation on arquity and more on that the company must invest in new incineration facilities Two posiblement options have been identified Each option as an expected to often years Silicet tunding is available to finance only one 500 10000 YOR Year Option A Option 600 C000 Incontrar 20020 F10260 Sereve year 10 TO Foreca necash flows Year: 40.000 0 000 Year 500 45 000 Year 45.000 S000 Year 50.000 50.000 Yew Yen SC000 Yew 20 000 0 000 5.000 00 30 000 Year 10 200 30.000 Assume that allows out the end of the Argonaus plus cool of 16 cm The company oth to restent pas desta recent meeting of Argonauts per Chute Argonaut s keen to understand the qualitative factors agreed to be considered in addition to the results of a se investiras commented Quartative investment praisal only the story. We need to consider the qualitative actos amigos en toe Sydney Groud, Director of Finance Agenampie has highlighted that success Investment appraanvolves a number of radicals Sydney Groudha commented Investment apprsatechniques such as payback, courting to run and next presente tre but there we cal ports to bear in mind when using these techniques. I would like to know more about these practical points Required Calculate the accounting rate of us for both option and option. Assume that the only once between show and the recitation charge (4 marks) Calculate the represent at tapten Aandton B.Uhe Agents ple's cost of capital as the course Critically evaluate the representedige (marks) Advise Argente's see on the comments made by Jamin telek and SydneyGroud Your should include an explanation of the qualitative factors will become before a decision which in the company should choose and any adesional information that might ad the investments marks

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