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Question 5. (12 Marla) Case 1. (6N) The Chen Company proposes an investment with the Author obtained offers from the suppliers All and C. The

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Question 5. (12 Marla) Case 1. (6N) The Chen Company proposes an investment with the Author obtained offers from the suppliers All and C. The projectes cath flows from each is Cash Inflow Year 1 Year 2 A 120.000 80,000 10,000 40,000 10,000 B Year Year 4 - 120,000 Cost Cash Inflow Year 1 Year 2 10,000 Year 3 Year 4 30,000 50,000 70,000 Cost Cash Intlow Year 1 - 120,000 40.000 50,000 Year 2 Year 3 65.000 Year 4 20,000 Required: Disclose which investment you would choose using the following methode Lenovo 50,000 Year 3 Year 4 65.000 20,000 Required: Disclose which investment you would choose using the following methods: 1. Marks) The Net present value of each investment using the present value interest factors of 8%. (Mutually exclusive events) (Year 10.9259, Year 2-0.8573 Year 3 = 0.7938 Year 4-0.735). 2. (1.5 Marks) The Discounted payback period of each investment using the present value in est factors of 8s (Year 1=0.9259, Year 2=0.8573 Year 3-0.7938 Year 4-0.735). 3 (1 Mark) The Payback period of each investment. 4. (5 Mark) The profitability index of each investment. 1 EE U S x X2 H Question 5. (12 Marks) Case 1. (6 Marks) The Chen Company proposes an investment in a new website that is estimated to cost AED 120,000. The company has obtained offers from three suppliers A B and C. The projected cash flows from each supplier are disclosed in the tables below: A Cost 120.000 Cash Inflow Year 1 80,000 varala

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