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I need the Answer within 40 min, please help me to do that XXY Ltd. is a motor parts trading company, intending to undertake a
I need the Answer within 40 min, please help me to do that
XXY Ltd. is a motor parts trading company, intending to undertake a new project which requires 525,432 of initial investment. The cost of capital for this project is estimated at 11% per annum. A consultant of XY Ltd. has come up with the following cash flow projections: Cash flows/Years 2021 2022 2023 2024 2025 2026 Cash inflows () 48,525 205,245 304,480 506,670 558,627 632,642 Cash outflows () | 105,135 233,360 309,828 304,380 208,430 207,258 As the Finance Director of ONY Ltd., you are required to: a) Appraise the proposed project using the Net Present Value (NPV) technique. [25 Marks] b) Advise management on the financial viability of the project. [5 Marks] c) Advise management on any financial and non-financial factors that need to be considered while making investment decisions. [10 Marks] Total [40 Marks]Step by Step Solution
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