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The following information is provided year 1 2 3 4 Cash flow Ksh 000 Ksh 000 Ksh 000 Ksh 000 2000 3000 6000 7000 Additional
The following information is provided year 1 2 3 4 Cash flow "Ksh 000" "Ksh 000" "Ksh 000" "Ksh 000 2000 3000 6000 7000 Additional information Investment will cost 5000,000 including 100,000 for daily operations and 50,000 for other preliminary costs. Investment will be financed 25% equity and 75% debt. The expected company gearing after investment will change to30% equity and 70% debt Investment equity beta 0.7 Cost of debt was 10% Capital allowances are 30% per year on declining balance basis Corporate tax was 25%, risk free rate was 6% and a market return of 13% After tax value of investment at the end of 5 years was 2.5 million Using the above information compute the NPV, APV and MIRR for this investment. The following information is provided year 1 2 3 4 Cash flow "Ksh 000" "Ksh 000" "Ksh 000" "Ksh 000 2000 3000 6000 7000 Additional information Investment will cost 5000,000 including 100,000 for daily operations and 50,000 for other preliminary costs. Investment will be financed 25% equity and 75% debt. The expected company gearing after investment will change to30% equity and 70% debt Investment equity beta 0.7 Cost of debt was 10% Capital allowances are 30% per year on declining balance basis Corporate tax was 25%, risk free rate was 6% and a market return of 13% After tax value of investment at the end of 5 years was 2.5 million Using the above information compute the NPV, APV and MIRR for this investment
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