Question
One of the reports submitted by the infrastructure development team revealed the following Cashflows A - R 210 000 R15 000 R 30 000
One of the reports submitted by the infrastructure development team revealed the following Cashflows A - R 210 000 R15 000 R 30 000 R 30 000 R 370 000 Year 0 1 2 3 4 Suppose you require a 15 per cent return on investment. 2.1 Using the payback period, which investment would you choose and why? 2.2 If you apply the NPV rule which investment, will you choose and why? 2.3 Based on the provided answers which project would you finally choose and why? Cashflow B - R 21 000 R11 000 R 9 000 R11 000 R 9 000 (6 marks) (6 marks) (3 marks)
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