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Deyyar PLC is planning to build a 7-star hotel in Dibba. The construction project will cost AED10,000,000 and will take 3-years to complete. Deyyar PLC

Deyyar PLC is planning to build a 7-star hotel in Dibba. The construction project will cost AED10,000,000 and will take 3-years to complete. Deyyar PLC expects future cash flows from a project of this type to increase over time as tourists get familiar with hotel as they visit Jebel Jais and has prepared the following cash flow statement for 3-years. Year 1 Year 2 Year 3 Depreciation 2,000,000 2,000,000 2,000,000 Net Income 2,000,000 4,000,000 6,000,000

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