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1.1. What is meant by each of each of the following statements? a. The present value of the future cash flows expected from an investment

1.1. What is meant by each of each of the following statements?

a. "The present value of the future cash flows expected from an investment project is R30,000,000". (2)

b. "The net present value (NPV) of an investment project is R10,000,000". (2)

c. "A project's cost of capital is 10 per cent". (2)

1.2. What are managerial options embedded in an investment projects? Give some examples.

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