PQR Ltd. plans to invest $1,000,000 in a new project. The project is expected to...
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Accounting
PQR Ltd. plans to invest $1,000,000 in a new project. The project is expected to generate annual cash inflows of $200,000 for 10 years. The project will be depreciated using the straight-line method, and the tax rate is 30%. The discount rate is 12%.
Required:
1.Compute the Annual Depreciation Expense.
2.Calculate the Payback Period (PBP).
3.Calculate the Average Rate of Return (ARR).
4.Calculate the Net Present Value (NPV).
5.Calculate the Internal Rate of Return (IRR).
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