Question
Good day I just need assistance with the NPV detail calculations please Question Gandul Limited has the option to invest in Project XXX. The following
Good day
I just need assistance with the NPV detail calculations please
Question
Gandul Limited has the option to invest in Project XXX. The following information is available on the project: Project XXX
Project XXX
Investment R280 000
Scrap value Nil
Expected life 5 years
Cost of capital 12%
Expected after tax profits and cash flows Profits Cash flows
End of: Rand
Rand
Year 5 23 000 79 000
Year 5 26 000 82 000
Year 5 40 000 96 000
Year 5 43 000 99 000
Year 5 14 000 70 000
Required:
2.4 Calculate the net present value of the project. (Round off amounts to the nearest Rand.)(8)
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