Calculation of return on capital employed Total cash inflow = 560,000 + 696,028 + 1,350,773 + 392,874 = $2,999,675
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How was the annual cashflow calculated? i managed to work out that the cashflow in the first year is ($20*103%-$8*104%)*60,000units-$17,000*104% = $560,000
but i am unable to work out the rest.
I suspect there is a typo, but then this exact questions was also present in Q4a iii – Paper Specimen 2014, and Q2b iii c – June 2009. *very confused*