A. Determine the average rate of return for a project that is estimated to yield total...

Question

Question

Answer 1

Answer #1

Solution1

Average Rate of Return= Average Annual income / Average Investment

=77600/388000= 20%

Average Investment = (706000+70000)/2=$388000

Average Annual income = 310400/4=77600

Solution-B

Cash Payback period= Estiamted Cost/ Annual Cash Flow

=440300/51800= 8.50 year

Solution-C

Cash Payback period= Estiamted Cost/ Annual Cash Flow

=425850/50100= 8.50 year

Answer 2

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