Investment appriasalForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Investment appriasalThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 19, 2016 at 1:21 pm #315813 Nabulya MillyParticipantTopics: 1Replies: 4☆Able Ltd is considering a new project for which the following information is avaliable .Intial cost – $ 300,000Expected life – 5yearsEstimated scrap value – $20,000Additional revenue from the project is $120,000 per year.Increamental costs of the project – $30,000 per yearcost Capital -10%Find accounting rate of return of the project, Payback and NPVI have tried over and over but i v failed to know intial total cost for the all project – 5year May 20, 2016 at 7:11 am #315965 John MoffatKeymasterTopics: 57Replies: 54628☆☆☆☆☆But you have typed the initial cost – it is an outflow of $300,000.Followed by inflows of 120,000 – 30,000 = 90,000 a year for 5 years, and then an inflow of 20,000 at the end of 5 years.Have you watch our free lectures on investment appraisal?(Our free lectures are a complete course for Paper F2 and cover everything needed to be able to pass the exam well 🙂 )AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In