Question
3.2 Dunstan Limited has a choice of investing in one of two projects. The following details relate to these: Project X Project Y Investment required
3.2 Dunstan Limited has a choice of investing in one of two projects. The following details relate to these: Project X Project Y Investment required R95 000 R95 000 Expected Economic lifetime 6 years 6 years Minimum required return of return 12% 12% Net annual cash inflows 1st year R15 000,00 R21 000,00 2nd year R30 000,00 R21 000,00 3rd year R28 000,00 R21 000,00 4th year R18 000,00 R21 000,00 5th year R15 000,00 R21 000,00 6thyear R14 000,00 R21 000,00 REQUIRED
3.2.1 Use the net present value method to determine which project Dunstan Ltd should choose. (8 Marks)
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Fraud Smart
Authors: K. H. Spencer Pickett
1st Edition
0470682582, 978-0470682586
