Capital outlay $200,000 Net Profit p. (before depreciation and tax) $ 90,000 Depreciation p.

Capital outlay                                                                         $200,000

Net Profit p.a. (before depreciation and tax)               $ 90,000

Depreciation p.a.                                                                     $ 40,000

Economic life: 5 years

Salvage value: Zero

Tax rate payable (assume paid in year of income): 30%

Required rate of return: 12% (WACC + Risk factor)

Calc the following:

(i)          The Net Profit After Tax for each year.

(ii)         The Annual Cash Flow for each year.

(iii)        Accounting Rate of Return (using total investment).

(iv)        Payback Period.

(v)         Net Present Value.

(vi)        Internal Rate Of Return