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Investment cost LE 20 million will be paid during one establishment year. Operating periods 5 years The current operating costs of is LE 7

Investment cost LE 20 million will be paid during one establishment year.  Operating periods 5 years  The

Investment cost LE 20 million will be paid during one establishment year. Operating periods 5 years The current operating costs of is LE 7 million (include LE 2 million depreciation). Annual sales revenues LE 10 million. Residual value 10 million The income tax rate is 20%. The discount rate 14% Required: Compute net cash flow and NPV, PI from the project angle and determine whether the project is accepted or rejected.

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