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1. The economic life of a project is estimated at five years. The project has been implemented at an investment of USD 1500000 . The

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1. The economic life of a project is estimated at five years. The project has been implemented at an investment of USD 1500000 . The expected cash inflows (USD) for the first five years, that is, till the economic life is over are as below. The net abandonment value or salvage value (USD) of the project for five years is given below. Make an analysis and ascertain when the project should be abandoned? Assume a cost of capital of 10% p.a. 2. Based on the information available below, calculate the real rate of return if general inflation rate is 10% but the sales revenue increases only at 8% rate. 1. The economic life of a project is estimated at five years. The project has been implemented at an investment of USD 1500000 . The expected cash inflows (USD) for the first five years, that is, till the economic life is over are as below. The net abandonment value or salvage value (USD) of the project for five years is given below. Make an analysis and ascertain when the project should be abandoned? Assume a cost of capital of 10% p.a. 2. Based on the information available below, calculate the real rate of return if general inflation rate is 10% but the sales revenue increases only at 8% rate

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