A 12 Question 3 (10 Marks) Parmesan Lid is considering investing 46,000 in a new...

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A 12 Question 3 (10 Marks) Parmesan Lid is considering investing 46,000 in a new delivery van that will last for 4 years, after which time it will be sold for 7,000 Depreciation is charged on a straight line basis. Forecast operating profits/(losses) to be generated by the machine are as follows: Year 1 16,500 2 23,500 3 13,500 4 (1,500) Required: a Calculate the Return on capital employed for the van using the average investment method. Mention the formulae you have used for your calculations. (5 Marks) b. Discuss the strengths and weaknesses of internal rate of return in appraising capital investments. (5 Marks) AS Help Fill in your answer here Format - BI UX, X'T E : 2 : 8 2 2 12 3 8 4 15 16 6 7 10 13 5 9 i 14 11 15

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