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Q1.AKM Ltd a Ghanaian Company intends to establish a subsidiary company in the Health Care Industry of the USA. The project requires GH500,000,000,00, an equivalent

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Q1.AKM Ltd a Ghanaian Company intends to establish a subsidiary company in the Health Care Industry of the USA. The project requires GH500,000,000,00, an equivalent to $250,000.00. The fund will be used to purchase deliver van, stationery items and provide Working Capital. An evaluation of the project shows that it could be successful. The investment cost of the project will pay-off at the end of the fifth year. The cash inflows are estimated to be $25,000.00 for each year. The exchange rate forecast shows variation as follows: Year Exchange rate Ce dis to allow (x) Jollar to cedis (J 0 GH2.00 is to $1.0 1 GH$5.50 is to $1.0 GH6.30 is to $1.0 3 GH6.50 is to $1.0 GH6.40 is to $1.0 5 GH6.50 is to $1.00 Assuming that interest rate is 10% (percent) and remains unchanged. Require: 1. Calculate the NPV of the Project (show workings) 2. Calculate Payback Period for the Project (show workings)

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