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Q2 Below is the investment appraisal table: Year Net cash flow 0 (100,000) 140,000 2 38,750 3 33,750 4 73,750 5 (11,250) a) Determine the
Q2 Below is the investment appraisal table: Year Net cash flow 0 (100,000) 140,000 2 38,750 3 33,750 4 73,750 5 (11,250) a) Determine the net present value of above investment if the cost of financing is 10%. [4 Marks] b) Compute the internal rate of return of this investment and explain your answer. [10 Marks] c) Decide, whether this investment should accepted if the firm's predetermined rate of return is at 25%. Justify your answer. [6 Marks]
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