needed help on this tough proble


XYZ  LTD is a clothing manufacturer operating in UK for more than 10 yrs, As a strategic decision to expand its operations.

 

Running expenses is estimated to be £200K per annum and Expected revenue is Swiss Francs 3800K per Annum, An additional License fee of £30K needs to be paid in advance to operate in the route for a yr.

Given the controls in this country, any factory of this nature will need an inspection by the authorities every 3 yrs amounting to £70K per inspection.

 

 Current interest rate is 10%, Cost of New machinery for this purpose in any country is £450K,

Lifetime of the Machinery is 10 yrs and at the end of 5yrs the machinery will attract, A residual value of £150K.

 

need to find  (NPV), (IRR), (ARR),  (PB), (Discounted payback period)