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3 Question 1 Windsor Ltd is considering a project, which will involve the following cash inflows and (out) flows: Year 0 Cash flow -400,000 40,000

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3 Question 1 Windsor Ltd is considering a project, which will involve the following cash inflows and (out) flows: Year 0 Cash flow -400,000 40,000 300,000 300,000 If the cost of borrowing is 15% per annum what is the net present value of the project? 2 1 Guide: The NPV = PV (Inflows) - PV (Outflows or Cost) We accept "deals" where the NPV > 0, and We reject deals where the NPV

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