60.000 80.00 10 years 50.000 8 years | Question-2 (16 pts, 10+6) 4 company is operating fashion clothing concessions in several large department stores A major store is opening its first provincial branch and the company is currently negotiating Corms for an in-store concession. The company must recoup within 3 years, after that time, the company will be required to completely refurbish their space. The company has had a estimate of initial cost of 89.000 great deal of experience in this type of shop-fitting and the directors are, confident in their for shop fitting. There will be additional advertising expenditure of 10.000 t in the first year to be treated as a cash flow arising at time 1). I However, the cash inflows arising from the project are less easy to estimate. The directors have prepared two sets of figures - one optimistic and one pessimistic. Their net cash inflow projections are as follows Time Optimistic scenario 56.000 66.000 68.000 Pessimistic scenario 32.000 35.000 36.000 # 29:52: T 20-TO-ozoz question:3 (24 pt.10) Calculate the no-return payback period for both scenarios. Calculate the expected net present value of the project if the probability of optimistic scenario is 40% and pessimistic one is 60% (Interest rate is 8%) WWONI Ashe