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N PROBLEM SOLVING EXEF X + le | C:/Users/Khodani/Downloads/BUSFIN%20PROBLEM%20SOLVING%20EXERCISES.pdf Draw Read aloud Ask Copilot 8 Initial cost Expected life Scrap value Expected net cash flows

N PROBLEM SOLVING EXEF X + le | C:/Users/Khodani/Downloads/BUSFIN%20PROBLEM%20SOLVING%20EXERCISES.pdf Draw Read aloud Ask Copilot 8 Initial cost Expected life Scrap value Expected net cash flows End of Year 1 Year 2 Year 3 Year 4 Year 5 of 10 INFORMATION The following information relates to two capital investment projects that are under consideration by Glendale Limited: Project A R260 000 Net profit used for: 5 years 0 R 100 000 76 000 68 000 70 000 66 000 The company estimates that its cost of capital is 12%. Depreciation: Straight-line method is used. HINTS: Net cash flows used for: Project B R260 000 5 years 0 R 72 000 72 000 72 000 72 000 72 000 8

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