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2. a) The initial investment of a Food Court project is RM 35,000 and the project has 6- year duration, with a discount rate of

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2. a) The initial investment of a Food Court project is RM 35,000 and the project has 6- year duration, with a discount rate of 35%. The cash inflows for each year is shown in Table Q2 (a). Assess this project initiation. [14 Marks) Table Q2 (a) Year 1 2 3 4 5 6 Cash Inflows RM9,500 RM12,000 RM11,500 RM10,650 RM11,200 RM13,550 Justify the Net Present Value obtained in a) (1). [4 Marks]

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