QUESTION SIX Kwempekwempe Co. Ltd is considering an investment in a new technology. It is anticipated that this investment will enhance the company's cash flows. The annual cash flows relating to the investment are as follows: Years Cash flows Year 1 K11.000.000 Year 2 K3,000,000 K34,000,000 Year 4 K47,000,000 Year 3 Year 5 K8,000,000 Investment at the start of the project would be K175,000,000. The depreciation has been included in the profit estimates above, which should be assumed to arise at each year end. Assume the cost of Capital is 12% Year 0 Year 1 Year 2 Year 3 Year 4 Year D. 1.00 0.893 0.797 0.712 0.636 0.567 Required - Calculate the following: A. Net Present Value (NPV) of the investment. [4 Marks) B. Payback period of the investment [2 marks] C. Accounting Rate of Retum (ARR) of the investment. (Assume the above Cash Flows are equally profits/losses) [3 Marks] D. Internal rate of return (IRR). [4 Marks) E. Based on the computations above provide a recommendation to the directors of Kwempekwempe Co. Ltd on the best appraisal technique. Justify your recommendation [2 Marks) A. Zambia sugar has issued a K20,000 par value bond with a 10 year maturity period. The bond carries an 8% coupon rate paid bi-annually and a 9% market discount rate. What is the market value of this bond? [5 marks]