Rumpy Ltd is listed on the New York Stock Exchange and is considering investing in the manufacturing of an energy savings gadget called E savers. The relevant information for this investment proposal is as follows:

Initial investment: $$2$ million

Selling price $($current price terms$)$: $$20$ per unit

Expected selling price inflation: $3\%$ per year

Variable operating costs $($current price terms$)$: $$8$ per unit

Fixed operating costs $($current price terms$)$: $$170,000$ per year

Expected operating cost inflation: $4\%$ per year.

Beden Marketing Elite, a renowned marketing consultant, has provided the following demand forecast for E savers:

Year $1$: $60,000$ units

Year $2$: $70,000$ units

Year $3$: $120,000$ units

Year $4$: $45,000$ units

Additional Information:

$-$ It is expected that all units produced will be sold.

$-$ There is no terminal value or machinery scrap value at the end of four years.

$-$ Rumpy uses a nominal discount rate of $10\%$ per year and a target return on capital employed of $30\%$ per year for investment appraisal purposes. Taxation is ignored.

Required:

$($a$)$ Calculate the following values for the investment proposal:

$($i$)$ Net Present Value $($NPV$)$

$($ii$)$ Internal Rate of Return $($IRR$)$

$($iii$)$ Return on Capital Employed $($Accounting Rate of Return$)$ based on average investment.

$($b$)$ Discuss your findings in each section of $($a$)$ above and advise whether the investment proposal is financially acceptable.

Help me to answer all required questions