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Conducting an investment appraisal for a capital project, consider the following data: Category Year 1 ($) Year 2 ($) Year 3 ($) Year 4 ($)


  1. Conducting an investment appraisal for a capital project, consider the following data:

CategoryYear 1 ($)Year 2 ($)Year 3 ($)Year 4 ($)Year 5 ($)
Cash Inflows40,00045,00050,00055,00060,000
Cash Outflows70,000



Your requirements are as follows:

  • Calculate the net present value (NPV) of the investment using a discount rate of 15%.
  • Determine the payback period for the investment.
  • Present the NPV and payback period calculations in a table format.
  • Provide a paragraph discussing the investment's financial viability.
  • Discuss the risk factors associated with the investment.
  • Include a bullet list of recommendations based on the investment appraisal results.

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