Required: a. Calculate the net annual cash flows for each of the years from the project. b. Calculate the payback period of the project c. Calculate the project's net present value. Is the project acceptable if the discount rate is 10%? d. Calculate the projects Internal Rate of Return. Is the project acceptable based on the your result? TT TT Paragraph Arial 3 (12pt) %DOQEEZET Kum p t y in Duba. Many of the studentsending the university are from other countries and live in the accommodation provided by the university, Kumar, an entrepreneur at heart, realues that few od con es t o students to do weekend travel to see the various mates in the UAL Kurableves that w erd com e to be organized and run proftally from several location. Kumar has thered the following investment information S D 1.000 phase and would have a year w e with the aveva unor plans to use tine depreciation. Therefore, the depreciation expense would be AD 17,000 each Tender would have to be employed a total salary per of ALD 70.000 1. Other experts acted with running the one would include Gasoline ALD Z1000, Maintenance AED 2,800, Repairs AED 3,500, Insurance AED 3200, and Advertising ALD1.500. uma expect each van to make en round trips weekly and carry an average of five students eacher. The service is expected to operate 30 weeks each year. Each student will be charged AED 18 for around trip ticket uma puys on taxes for his business Kum p t y in Duba. Many of the studentsending the university are from other countries and live in the accommodation provided by the university, Kumar, an entrepreneur at heart, realues that few od con es t o students to do weekend travel to see the various mates in the UAL Kurableves that w erd com e to be organized and run proftally from several location. Kumar has thered the following investment information S D 1.000 phase and would have a year w e with the aveva unor plans to use tine depreciation. Therefore, the depreciation expense would be AD 17,000 each Tender would have to be employed a total salary per of ALD 70.000 1. Other experts acted with running the one would include Gasoline ALD Z1000, Maintenance AED 2,800, Repairs AED 3,500, Insurance AED 3200, and Advertising ALD1.500. uma expect each van to make en round trips weekly and carry an average of five students eacher. The service is expected to operate 30 weeks each year. Each student will be charged AED 18 for around trip ticket uma puys on taxes for his business Required: a. Calculate the net annual cash flows for each of the years from the project. b. Calculate the payback period of the project c. Calculate the project's net present value. Is the project acceptable if the discount rate is 10%? d. Calculate the projects Internal Rate of Return is the project acceptable based on the your result? T Arial T T F Paragraph % DO QE 3 (12pt) - E-T. SS TT, --- Path: P
