Calculate the average rate of return and payback period

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Reference no: EM13914654

Junky Co. are considering a new project. Total revenue for the initial phase and the termination phase are expected to be 120K$ and 0K$ respectively. The operational phase will last five year and CFAT, and PAT for each year are expected to be 50K$ and 30K$ respecitvely.

If MCC is 18%

calculate

a) Average rate of return

b) Payback period

c) Profitability index

d) Internal rate of return

Reference no: EM13914654

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