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1.2 REQUIRED Use the information provided below to calculate the operating cash flows over the four year period. (6) INFORMATION Scampi Ltd has decided to

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1.2 REQUIRED Use the information provided below to calculate the operating cash flows over the four year period. (6) INFORMATION Scampi Ltd has decided to invest in equipment that cost R200 000, excluding R20 000 installation costs that have to be incurred. The equipment is to be depreciated on a straight- line basis over a four-year period. The following are the expected incremental increases in net operating profit (loss) after taxes (NOPAT) over the four-year life of the investment: Year R 50 000 1 2 28 000 (4 000) 3 4 16 000

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