Calculate the net present value or npv for the project

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Rolls Ltd is evaluating the investment on a new project that has an initial cost of RM1,000,000. The company estimates that the annual net profits and annual cash inflows for the next 5 years are RM150,000 and RM320,000 respectively.'

Problem 1: Calculate (i) the net present value (NPV) for the project when the discount rate is 10%; (ii) payback period; and (iii) accounting rate of return (ARR).

Reference no: EM132856524

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