The managing director of ATS Ltd is faced with making a choice between
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The managing director of ATS Ltd is faced with making a choice between

Question 3

The managing director of ATS Ltd is faced with making a choice between two investment opportunities.  As a good friend of the managing director, you are required to use your knowledge from Accounting and Finance in the Organisation module to assist him arrive at the best decision. Below are the details of the investment opportunities. 


Required:

Using the information, you have downloaded, answer question 1 to 5.

1)  Calculate the Present Value (PV) of Year 2 Net Cash Flow of Investment A

2) What is the Net Cash flow of Year 1 for investment A 

3) Calculate the Payback period (PP) of the investment A

4) Calculate the cash inflow of Year 4 for Investment B

5) Calculate the NPV of Investment B

Hint
Accounts & Finance" Net cash flow of investment is a financial metric that measures the difference between the cash inflows and outflows related to an investment over a specific period. It provides a snapshot of the amount of cash generated or used by an investment after accounting for all related cash inflows and outflows, including initial investment costs, ongoing expenses, and proceeds fro...

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