Solved: Abc inc can sell 5000 cans of cold drinks per year 4 each, Finance Basics

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Abc inc can sell 5000 cans of cold drinks per year 4 each

Question: ABC Inc can sell 5000 cans of cold drinks per year $4 each and its cost price is $2.50. The project has a life of 3 years and return expected is 20%. Fixed cost is $20000 per annum. Investment in machinery is $90000 to be depreciated over 3 years. The project requires an initial investment of $20000 in working capital. Find the project cash flow and Average Rate of Return(ARR)

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Finance Basics: Abc inc can sell 5000 cans of cold drinks per year 4 each

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