Sustain

Task 10.6

A business has the following four projects to guide from:

gold flowsABCD
Year££££
0(4000)(4000)(cc0)(2000)
12000601,3000
22000601,3000
32003200400
42003200403,700

Calculate the ARR, PBP, NPV, & angstrom unit; IRR for each of the above projects. Assume a discount rove of 7% for the NPV calculations.

Prepare a report for the manager, with your justified tribute (max 250 words).

Accounting rate of return

A - 27.5%
B 40.75%
C 33.5%
D 46.25%

Payback Period

A 2 age
B 2 years 3 months
C 1 year 7 months
D 3 years 7 months

last(a) present value

A YearCash7% Discount rateNet valueValue
0{4000}(4000)
120001/1.070.93461869.16
220000.9346/1.070.87351746.92
32000.8735/1.070.8164163.27
42000.8164/1.070.763152.60

(-68. 05)

B 040004000
1601/1.070.934656.076
2600.9346/1.070.873552.41
332000.8735/1.070.81642612.48
432000.8164/1.070.7632441.60

1162.57

C - 020002000
1 13001/1.070.93461214.98
213000.9346/1.070.87351135.55
3400.8735/1.070.816432.66
4400.8164/1.070.76330.52

413.



71

D - 020002000
1 01/1.070.93460
2 00.9346/1.070.87350
3 00.8735/1.070.81640
4 37000.8164/1.070.7632823.10

823.10

Internal Rate of return

A YearCash7% factorPV5% factorPV
040001.000040001.00004000
120000.93461869.160.95241904.8
220000.87351746.920.90701814
32000.8164163.270.8638172.76
42000.763152.60.8227164.54

56.1

IRR = 5+[56.1(56.1+68. 05)] %

=5.45%

B - YearCash7% factorPV16%factorPV
040001.000040001.00004000
1600.934656.0760.862151.73
2600.873552.410.743244.59
332000.81642612.480.6407...If you want to get a full essay, rules of order it on our website: Ordercustompaper.com



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