Education homework help
Education homework help. Hello, I really need help with this question. Can a tutor please assist me with this one? The selection in price is only allowing for up to $8.00 but I will tip more. Question:For the following exercise, complete the calculations below. Evaluate different capital investment appraisal techniques by completing the calculations shown below:Bongo Ltd. is considering the selection of one of two mutually exclusive projects. Both would involve purchasing machinery with an estimated useful life of 5 years.Project 1 would generate annual cash flows (receipts less payments) of £200,000; the machinery would cost £556,000 with a scrap value of £56,000.Project 2 would generate cash flows of £500,000 per annum; the machinery would cost £1,616,000 with a scrap value of £301,000.Bongo uses straight-line depreciation. Its cost of capital is 15% per annum.Assume that all cash flows arise on the anniversaries of the initial outlay, that there are no price changes over the project lives, and that accepting either project will have no impact on working capital requirements.Assess the choice using the following methods by completing the calculations shown below:ARRNPVIRRPayback periodCalculate the missing answers:Project 1Project 2ARR (see workings)33%???NPV (£’000)???210IRR25%???Payback Period (yrs)???3.2ARR workings (Project 1)Cash flows200Less: depreciation (see below)100Accounting profits100These profits are the same each year in this question.Annual depreciation (Cost – SV) / 5(556,000 – 56,000) / 5100Average NBV of investments(556 + 56) /2 306ARR33%Be sure to demonstrate your workings.