Calculate the accounting rate of return

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Reference no: EM132904869

Question - Given

Project cost $50,000

Estimated life 5 years

Annual net profit after tax $15,000

Required rate of return after tax 10%

Tax Rate (payable in the year of income) 30%

Required -

(a) Calculate the Accounting rate of return?

(b) Calculate the Payback period?

(c) Calculate the Internal rate of return?

(d) Calculate the Net present value?

Reference no: EM132904869

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