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)