Calculate whether an investor should pursue a 5 year project that costs R20 000 and generates the following cashflows: R4353 in a year's time, R5858 in year 3, R8010 in year 4 and R12643 in year 5. The cost of capital is 7,25%.

ALL ANSWERS TO 2 DECIMAL PLACES

a. What is the Net Present Value of the project given the forecasted cashflows? NPV is R Blank 1. Fill in the blank, read surrounding text. .

b. What is the IRR of the project? IRR is