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Calculate the following project, at cost of capital of 10% Years Cash Flow (RM) 0 -10,000 1 2000 2 2000 3 4000 4 4000 5

Calculate the following project, at cost of capital of 10%

Years Cash Flow (RM)
0 -10,000
1 2000
2 2000
3 4000
4 4000
5 5000

i) calculate NPV (8marks)

ii) calculate PI (2 marks)

iii) Justified should we accept or reject the project? (2 marks)

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