Accounting and Finance

Required: (a) Estimate the Net Present Value of the project and the Internal Rate of Return of Option 1 and show your calculations clearly. (b) Estimate the payback period, accounting rate of return, net present value and the internal rate of return of the three investment opportunities in Option 2. Show your calculations clearly. (c) Write a short report to the Board to explaining which of the three competing alternatives (A, B or C in Option 2) is best and why. (d) Include in your report an explanation of the advantages and disadvantages of the alternative investment appraisal methods that you have used in Option 2.  



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