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QUESTION TWO Below is the given information to enable you answer question two and question three. Description of hypothetical investment table 1 Projects Initial investment
QUESTION TWO Below is the given information to enable you answer question two and question three. Description of hypothetical investment table 1 Projects Initial investment Net cash inflows in the years Costs in years 0 2 6000 3000 2000 B 6000 500 2500 6000 2000 The discount rate is 10% a. Compute the AARR for project A (5 marks) b. Compute the Payback Period in years and months for project C (5 marks) 3 2000 6000 6000 3000 C. Compute the Benefit Cost ratio of project C? (5 marks) d. Compute Net Present value of K500 using 10% discount rate for the period of 5 years? Please show your work clearly? ( 5 marks)
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