(a)An initial investment of Ghc 2,900,000 in a project produces cash inflows of Ghc750,000, Ghc 750,000, Ghc 900,000, Ghc 900,000, Ghc 595,000 at 12 month intervals. The cost of capital to finance the project is 12%. You are required to decide whether the project is worthwhile using: i) The Net Present Value ii) The Internal Rate of Return

(b) The following information relate to a project just about to be launched: Project expected life 5 years Project outlay GH120,000 Expected profits after tax but before depreciation are: Year Profits GH 1 20,000 2 60,000 3 30,000 2 4 25,000 5 4,000 Required Estimate the payback period of the project