Question
Dweller Berhad is considering a four-year project that has an initial after-tax outlay or after-tax cost of RM80,000. The future cash inflows from its project
Dweller Berhad is considering a four-year project that has an initial after-tax outlay or after-tax cost of RM80,000.
The future cash inflows from its project as follows:
Year | Cash Flow |
1 | RM40,000 |
2 | RM40,000 |
3 | RM30,000 |
4 | RM30,000 |
Dweller uses the net present value method and has a discount rate of 12%. Will Dweller accept the project?
Question 20 options:
| a. Dweller accepts the project because it has a positive NPV of RM28,020.99 |
| b. Dweller rejects the project because the NPV is less than -RM4,000. |
| c. Dweller accepts the project because the NPV is greater than RM30,000. |
| d. Dweller rejects the project because the NPV is -RM3,021. |
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