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requirement #3 please clear computer writing not hand writing because i don't understand hand writing and thank you Q2. Mohammed is considering investing in new

requirement #3
please clear computer writing not hand writing because i don't understand hand writing
and thank you
image text in transcribed
Q2. Mohammed is considering investing in new assets. He expects the portal to save $60,000 per year for each of the six years of its useful life. Options The amount invested Expected cash inflow Economy car 240,000 Riyals 60,000 per year for each of the six years(useful life 6 years) Mid-Size car 240,000 Riyals 80,000 Per year for the next 3 years Residual value = 0) Truck 240,000 Year Year 1 100,000 Year 280.000 Year 350,000 Year 450,000 Year 540.000 Year 640,000 (Residual value = 30,000) Requirements: Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two plans. 2. Which expansion plan should Mohammed choose? Why? 3. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return? Q2. Mohammed is considering investing in new assets. He expects the portal to save $60,000 per year for each of the six years of its useful life. Options The amount invested Expected cash inflow Economy car 240,000 Riyals 60,000 per year for each of the six years(useful life 6 years) Mid-Size car 240,000 Riyals 80,000 Per year for the next 3 years Residual value = 0) Truck 240,000 Year Year 1 100,000 Year 280.000 Year 350,000 Year 450,000 Year 540.000 Year 640,000 (Residual value = 30,000) Requirements: Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two plans. 2. Which expansion plan should Mohammed choose? Why? 3. Estimate Plan A's IRR. How does the IRR compare with the company's required rate of return

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