CAPITAL BUDGETING Kuta Co. Ltd is considering will enhance the company's cash flows. The annual incremental profits! (losses) relating to the an investment in a new technology. It is anticipated that this investment investment are estimated as follows: Years Year 1 Year 2 Year 3 Year 4 Year 5 K11,000,000 K3,000,000 K34,000,000 K47,000,000 K8,000,000 Investment at the start of the project would be K175, 000,000 the investment sum assuming nil disposal value after five years, would be written off using the equal instalment method. The depreciation has been included in the profit estimates above, which should be assumed to arise at each year end. Assume the cost of Capital is 12% Year 0 Year 1 Year 2 Year 3 Year 5 1.00 0.893 0.797 0.712 0.636 0.567 Corporate Fimance Bxactiss Questions Cormorate Finance Bractise Questions