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Consider a project with an initial investment of R45 000 and the following cash flows: Year 1 R10 000 Year 2 R10 000 Year 3

Consider a project with an initial investment of R45 000 and the following cash flows:

Year 1 R10 000

Year 2 R10 000

Year 3 R15 000

Year 4 R25 000

Assuming that the NPV has been correctly calculated as R5 257.70,

which one of the following is a correct manual calculation of the PI of the project?

a. 5257.70+4500045000

b. 5257.70+4500045000+1

c. 5257.7045000+45000

d. 5257.7045000

e. 10000+10000+15000+2500045000+1

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