Explain briefly which project you would recommend to senior management of Aisha Plc under each technique and state your reason why you would recommend that machine.

Math/Physic/Economic/Statistic Problems

They want you to appraise the two prospective projects using the following investment appraisal techniques:                                                                                                                        [46 MARKS]

• Payback (8marks)
• Accounting rate of Return (10 marks)
• Net Present Value (12 marks)
• Internal Rate of Return (16 marks)

QUESTION 1(b) :

Write a report (of around 500 words) to the senior management of the company explaining how each of the techniques works. Your report should include at least two advantages and two disadvantages of each technique.                                                                                                           [16 MARKS]

QUESTION 1(c) :

Explain briefly (in around 200 words) which project you would recommend to senior management of Aisha Plc under each technique and state your reason why you would recommend that machine.