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Makna Berhad Makna is rolling out a project costs RM1 million that will be going on for 6 years. The expected cash flows of the

Makna Berhad

Makna is rolling out a project costs RM1 million that will be going on for 6 years. The expected cash flows of the project is as follows:

Year Operating Cash Flow
1 200,000.00
2 300,000.00
3 400,000.00
4 300,000.00
5 300,000.00
6 150,000.00

The project's cost of capital is 5.73%.

Is the project viable for the company? Explain using Capital Budgeting Techniques' assessment.

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