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
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