Hi, can you help to
Calculate the following from the information given below:
Payback period (answer expressed in years, months and days).
Accounting Rate of Return on average investment (answer expressed to 2 decimal places).
Internal Rate of Return (answer expressed to 2 decimal places) if the net cash inflow per year is R200 000 for 5 years. Use interpolation to arrive at your answer.
Fego Limited is considering the purchase of Machine X, details of which are provided below:
The cost of capital is 12%. Depreciation is calculated using the straight-line method. No scrap value is expected for the machine.
Payback period is 3 years 1 month 23 days... View the full answer