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(b) The cash flows are distributed over 6 years for Project W. The initial cost and estimated cash flows are shown in Table 2.
(b) The cash flows are distributed over 6 years for Project W. The initial cost and estimated cash flows are shown in Table 2. Year 012345 Table 2 RM -25,000 2,000 8,000 14,000 20,000 26,000 (i) (ii) (iii) Assuming the rate of return is 18%, determine the net present value for the above project. Comment on your action. (6 marks) Assuming the rate of return is 33%, determine the net present value for the above project. Comment on your action. (6 marks) Based on your answers in (b) (i) and (ii), estimate the internal rate of return for the above project. (3 marks)
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