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tes) Text Predictions: On Part IV 10 Marks Each Total Marks -50 Marks - Continued 4. An investment has an initial cost of $750,000 and

tes) Text Predictions: On Part IV 10 Marks Each Total Marks -50 Marks - Continued 4. An investment has an initial cost of $750,000 and will generate estimated future cash flow of $200,000 per year for the next five years Required (a) Calculate the following: (1) The payback period (iii) (iv) (v) (b) Q Search Accessibility: Unavailable The return on the initial investment The return on the average investment The present value using an interest rate of 10% The present value using an interest rate of 20% 5. Your company makes BBQ's from scratch - that is to say you currently make all of the components for the BBQ's from their raw materials (sheet metal, paint, nuts & bolts, etc.) Component "A", of which you make 2000 units per month, costs you $28.00 in variable Is the investment worthwhile? myhp HE G

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