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Let's now look product at 1 1 . 2 gtbest the present $ 2 0 millot or cash outflow of the project years Part gives

Let's now look product at 11.2gtbest the present $20 millot or cash outflow of the project years Part gives the project's annual projected profit ched statements of incomes and cash flows project's five-year cash flow forecast (the cash inflows and cash Part C shows the project's Part O gives the overview mach year) outflows Tahle Gauging Project A. The project RAD Other Net working capital Total capital employed B. The projected stateme income Profit $ 50.000375,000 $10,000690.000 $150,000850.000500.000500.00052,000,000 C. Projected statements of income and cash flows Year Revenue Cost of sales Gross profit Distribution and administrative expenses Profit before CCA CCA Profit before taxes Income tax expense (50%) Profit for the year Add back CCA Cash flows 124 $1,300 $1.700(600)(700)(990) $2,415 $3,000(1240) $3,700(1.560)700(350)1,000(400)1,4251,7602.140(500)(600)(650)3506009251,1601,490(250)100(200)(175)4007501:0201,380(50)50(200)(375)(510)(690)200375510690250200175140110 $300 $400 $550 $650 $800 D. Projected cash flow (000s) Year Assets Working capital 012345 $(1,500) $(250)300400 S(250) Pro-forma cash flow $5505650 $800 Sale of assets 300 Recovery of working capital 500 Total cash flow $(1,500) $50 $150 $550 $650 $1,600Calculate the project's Net Present Value. (2 marks)Calculate the project's approximately Internal Rate of Return. (2 marks)Should Management approve this decision? Why or why not? (2 marks)

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