financial management

b. For Project Medinite to proceed, a feasibility study will have to be completed to determine if the benefits exceed the costs of the project. The cost of the equipment for the project will be R12m at the start and R2m at the end. The cash flows will start at R3m at the end of the first year, and grow at 10%. If the project will take 4 years to complete, and the real rate of return is 4% on the project, should you accept the project? The inflation rate is 6%. Make use of the Payback, NPV, and IRR to make a decision