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2. Consider an existing project with an annual cash generation of $8000 expected to last 15 years. If an additional single investment of $10,000 is
2. Consider an existing project with an annual cash generation of $8000 expected to last 15 years. If an additional single investment of $10,000 is made, the cash flow will be accelerated to $12,000 per year but would last only 10 years, since no new cash was generated.
a) Generate a cash flow table for this project
b) Analyse the profitability of this accelerated project using discounted cash flow rate of return.
(No discount rate was given, I guess he wants us to assume one, maybe 10% or something like that)
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