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XYZ Ltd. is considering an investment of $800,000. The expected net cash inflows are: Year Net Inflow 1 $150,000 2 $160,000 3 $170,000 4 $180,000
XYZ Ltd. is considering an investment of $800,000. The expected net cash inflows are:
Year | Net Inflow |
1 | $150,000 |
2 | $160,000 |
3 | $170,000 |
4 | $180,000 |
5 | $190,000 |
Requirements:
- Calculate the Accounting Rate of Return (ARR).
- Determine the Payback Period.
- Compute the Net Present Value (NPV) at a 9% discount rate.
- Calculate the Internal Rate of Return (IRR).
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