Blue Stars company management is about to take an investment decision on a specific project. The proposed project requires an initial investment of $500,000 in the first year of implementation and 90,000 100,000, 175,000 and 35,000 successively in the years that follow year 1, and is expected to generate the following cash inflows successively in the subsequent four years after the first year of implementat on: $300,000, $400,000, $100,000, $50,000. Assuming a 10% discount rate:

1. Calculate the Net Present Value (NPV) of the project (round the discount factors to 2 decimal points only). (7 Marks)

2. Show when the Payback year will occur and justify your answer. (3 Marks)

3. Calculate the ROI of the project (3 Marks) 4. Will you advice this company to invest on this project or not and why? (2 Marks) (Note: to get full credit, you need to clearly show the breakdown ol your work)

Add to Sus company management is about to take an investment doction on a specific project. The proposed protejares an all the few year 100,000. 175.000 and 35,000 successively in the years that follow year and is expected the foldwing hinweise when you on $300,000, $400,000, 5100,000, 550,000 Assuming a 10% discount rate: 1. Calculate the Net Present Value (NPV) of the project (round the discerant factors to 2 decimal points only (7 Muka) 2. Show when the Payback year will occut and justify your answer. Marki) 3. Calculate the ROI of the project Marks) 4. Will you advice this company to invest on this project or not and whyl 2 Mark) to get full credit, you need to clearly show that wol your work presa ALT.F10 PALT.PN.10(Mac BAIXO0Q BE to 14 Add to Sus company management is about to take an investment doction on a specific project. The proposed protejares an all the few year 100,000. 175.000 and 35,000 successively in the years that follow year and is expected the foldwing hinweise when you on $300,000, $400,000, 5100,000, 550,000 Assuming a 10% discount rate: 1. Calculate the Net Present Value (NPV) of the project (round the discerant factors to 2 decimal points only (7 Muka) 2. Show when the Payback year will occut and justify your answer. Marki) 3. Calculate the ROI of the project Marks) 4. Will you advice this company to invest on this project or not and whyl 2 Mark) to get full credit, you need to clearly show that wol your work presa ALT.F10 PALT.PN.10(Mac BAIXO0Q BE to 14