3.

Depreciatio Expense= 19 200/ 3 = 6 400

Net cash flows 8 000
Depreciation Expense ( 6 400 )
1 600
Simple ARR= 1 600/ 19 200= 8. 33%- B

4. Depreciation Expense= 50 000-5 000/ 8 = 5 625

Sales 15 000
Deoreciation Expense (5 625)
9 375
Simple ARR= 5 625/ 9 375 = 18.75%- C

5. 8 000/ 6 = 1 333
2 000- 1 333 = 667
667/ 667= 16.7 - C

6.

7. 30 000/ 8 000 = 3.75 years

8.
 YEAR CASH PV FACTOR PV DISCOUNTED DISCOUNTED
INFLOWS CTD PAYBACK
1 200,000,000 0.909091 181,818,182 181,818,182 1
2 370,000,000 0.826446 305,785,124 487,603,306 1
3 225,000,000 0.751315 169,045,830 656,649,136 1
4 700,000,000 0.683013 478,109,419 1,134,758,555 0.09

Discounted PP 3.09- E

9.

YEAR CASH PV FACTOR PV

INFLOWS
1 2 000 1 506. 55 1 785 .71
2 3 000 2 259. 83 2 391. 58
3 3 000 2 259. 83 2 135.34
4 1 500 1 129. 91 953. 277
7 156.12 7 265.9

10. Cash Inflows x PV Factor= PV

450 000 x 0.909090 = 4 09 090. 90
Less: Cost of investment = 400 000
NPV = 9 090. 90- A