Question
Handsome Ltd is considering a project with the following cash flows: Year Cost of Plant Running costs Savings RM RM RM 2020 (1,280,000) 2021 480,000
Handsome Ltd is considering a project with the following cash flows:
Year
Cost of Plant
Running costs
Savings
RM
RM
RM
2020
(1,280,000)
2021
480,000
840,000
2022
550,000
980,000
2023
670,000
1,120,000
2024
890,000
1,400,000
Handsome Ltds cost of capital is 10%.
Required:
a.
Appraise the viability of the proposed project using the Net Present Value method of
investment appraisal.
b.
State with reasons if the project is worthwhile.
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Fraud Examination Investigative And Audit Procedures
Authors: Joseph T. Wells
1st Edition
089930639X, 978-0899306391
