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A proposal to build a plant to produce a new product is presented below. The investment required is N14,000,000:9 with investment periodically as; When First

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A proposal to build a plant to produce a new product is presented below. The investment required is N14,000,000:9 with investment periodically as; When First year Second year Third year NG = Soles theme ON 2.0 million (design costs) 8.0 million (construction costs) ic 2.0 million (working capital) The fixed operating costs are estimated mn be: The variable operating costs are estimated to be: N200,000 per year up to year 6 N10-per 1000kg of product up to year 6 N250,000 per year from year 7 N13 per 1000kg of product from year 7 3 4 5 6 End of year 7 8 9: TO 75 83 85 90 90 Forecast sales x 0(0) 100 103 110 0 140 140 140 140 140 125 125 Forecast selling price N/ 125 0 85 85 85 85 85 78 Raw material costs N/t product Calculate: 1. The net cash flow in each year. 2. The future worth of the project, NFW. 3. The present worth, NPW, at a discount rate of 14 per cent. 4. Draw the project entsh-flow diagram [40 1 0 0 0 FI 85 78

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