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ON TWO (20 MARKS) a) Mama Safi ltd is a company manufacturing quality detergent. The management have chosen to expand their products and have
ON TWO (20 MARKS) a) Mama Safi ltd is a company manufacturing quality detergent. The management have chosen to expand their products and have identified a project that will cost Ksh. 800,000 to put up, with a cost of capital at 8% and will generate the following returns: Year Cash inflow Required: Kshs 1 250,000 2 300,000 3 100,000 4 150,000 5 100,000 6 0 ) Compute the NPV, BCR and Payback period for this project. (12 Marks)
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