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1 . 2 The IndiFood restaurant is planning to open a new site in either Durban or Pretoria, and they would like to know which

1.2 The IndiFood restaurant is planning to open a new site in either Durban or Pretoria, and they would like to know which is the most viable option. The company's cost of capital is 10% for each project, and the initial investment is R2000000(R2m). The following estimated cash flows are given:
Pretoria has the following estimated cash flows:
\table[[Year,0,1,2,3,4],[Cash flow,-2000000,R600000,R400000,R700000,R800000]]
Durban has the following estimated cash flows:
\table[[Year,0,1,2,3,4],[Cash flow,-2000000,R600000,R800000,R800000,R900000]]
1.2.1 Calculate the NVP (net present value) of each project and recommend which project the company should select. (present your answer in an NPV table)
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