An appraisal of the current investment proposal. You are required to advise whether the project should be taken up by the company or not. Since it is a vital project for the company so you need to be careful in choosing the appraisal method and it is advisable that you use more than one appraisal methods. It is estimated that the investment project will result in increasing sales revenue of the company by 7% in each of the first 3 years, then by 4% in each of the next 5 years after which the project will be scrapped. The company expects to be able to borrow the required financing at 4% interest rate from a consortium of 3 banks. The current cost of capital of the company is 8% which is expected to remain unchanged for the life of the project