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ssume a RM300,000 investment and the following cash flows for two products: Product X RM 70,000 80,000 90,000 Year Product Y RM 1 80,000 95,000 105,000 125,000 2 3 4 95,000 ost of capital is 12%

ssume a RM300,000 investment and the following cash flows for two products: Product X RM 70,000 80,000 90,000 Year Product Y RM 1 80,000 95,000 105,000 125,000 2 3 4 95,000 ost of capital is 12%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Only for d and e, subpart, a, b, and c has been answered here: https://www.bartleby.com/questions-and-answers/assume-a-rm300000-investment-and-the-following-cash-flows-for-two-products-year-product-x-product-y-/451dabc9-fd11-47c3-b65c-12ff5b7e32e5

TUTORIAL : CAPITAL BUDGETING (PAYBACK PERIOD, NPV, IRR) QUESTION - 1 Assume a RM300,000 investment and the following cash flows for two products: Year Product X Product Y RM 80,000 95,000 105,000 125,000 RM 70,000 80,000 90,000 1 3 4 95,000 Cost of capital is 12% Required: For each possible project you are required to calculate: (a) Accounting rate of return (ARR) (b) Payback Period PP) (c) Net Present Value (NPV) (d) Internal Rate of Return (IRR) (e) Suggest which product may choose as per IRR.
Transcribed Image Text:TUTORIAL : CAPITAL BUDGETING (PAYBACK PERIOD, NPV, IRR) QUESTION - 1 Assume a RM300,000 investment and the following cash flows for two products: Year Product X Product Y RM 80,000 95,000 105,000 125,000 RM 70,000 80,000 90,000 1 3 4 95,000 Cost of capital is 12% Required: For each possible project you are required to calculate: (a) Accounting rate of return (ARR) (b) Payback Period PP) (c) Net Present Value (NPV) (d) Internal Rate of Return (IRR) (e) Suggest which product may choose as per IRR.
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