Further information: Ideally the company would like a 15% return on this investment. The following are the present value information: Present value 15% 10% 20% Year 1 0.833 0.694 0.579 0.909 Year 2...

calculate internal rate of return

acounting rate of return

pay back period

Extracted text: Further information: Ideally the company would like a 15% return on this investment. The following are the present value information: Present value 15% 10% 20% Year 1 0.833 0.694 0.579 0.909 Year 2 Year 3 Year 4 Year 5 0.870 0.756 0.658 0.572 0.826 0.751 0.482 0.683 0.621 0.497 0.402 Required: Calculate the net present value. internal rate of return, accounting rate of return and payback period, net present value of the planned investment project. a.


Extracted text: SV Sdn Bhd is considering to buy a giant machine which is expected to increase its factory production output and profits over an expected useful life of 5 years. The initial cost of investment of this machine is RM3,500,000. The estimated annual profits for the next 5 years, are as follows Year 1 Year 2 RM 200,000 400,000 Year 3 Year 4 700,000 550,000 300,000 Year 5 It is expected that machine will depreciate its useful lives and the company is adopting straight-line method in depreciation this machine. It is noted that the annual profits above are derived after deducting: annual depreciation, with an assumption that the residual value for the machine at the end of Year 5 shall be RM50.000. (i) (ii) annual administrative expenses of RM35,000. annual general provision for various expected write-offs. This provision was computed based on 1% of the investment value. (iii) Further information: