year

revenue

profit

depreciat
ion

0
1
2
3
4

450000
00
540000
00
675000
00
776250
00

4500000

4500000

5400000

4500000

6750000

4500000

7762500

4500000

4
total
profit=

cash
flow

200000
00
900000
0
990000
0
112500
00
122625
00
200000
0

24412500

cash flow

20000000

1
2

9000000
9900000

11250000

PBP=
2+(1100000/112500
00)

cum.
Balance

2000000
0
1100000
0
-1100000
1015000
0

2.10 years

ii)
Accounting Rate of
Return
average profit=
24412500/4=
average
investment=

PV

0.926
0.857
0.794
0.735
0.735
NPV=

i) payback
period

year

dcf
8%

6103125
(20000000+20000
00)/2 =
1100000
0

200000
00
833400
0
848430
0
893250
0
901293
7.5
147000
0
162337
38

ARR= Average profit*100/average

investment=

iii)

Net present Value =

55.48
%

16,233,
738

therefore because less investment is resulting in a greater NPV then

the vocal-phone in brunei is the investment that Telco should
consider