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Falah Is setting up a project, SAHARA Cafe, with an initial Investment of at TO of AED 400,000 and generating the cashflows below: Year 1

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Falah Is setting up a project, SAHARA Cafe, with an initial Investment of at TO of AED 400,000 and generating the cashflows below: Year 1 2 3 Net annual 175.000 140,000 115,000 Cash flows 1. Calculate the NPV of the project considering that the required return is 8%. (16 marks) 2. Advise Falah to retain or reject the project based on the NPV, and explain why (4marks

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