Basic Information: Sales:Year 1 Nil Year 2 RM 50,000 Year 3-5 RM 60,000 Costs: Fixed cost Year 1-5 RM 6,000 Variable cost 20% of sales Investment RM 30,000 Terminal Value of Investment RM 8,000...

Basic Information:
Sales:Year 1 Nil
Year 2 RM 50,000
Year 3-5 RM 60,000
Costs:
Fixed cost Year 1-5 RM 6,000

Variable cost 20% of sales

Investment RM 30,000

Terminal Value of Investment RM 8,000

Depreciation 10% of initial investment

Please prepare the Cash Flow Statement and estimate -

(a) Payback Period;

(b) Net Present Value (NPV) at 10% discount rate; and

(c) Internal Rate of Return for the Project.

(d) Profit & Loss Statement, and

(e) compute the average profit for the Project life.