Q2

Q2: Carrefour is expecting its new center to generate the following cash flows: 5 Years Initial investment Net operating cash flows 0 1 2 3 4 5 ($35,000,000) $6,000,00 $8,000,00 $16,000,00 $20,000,00 $30,000,00 0 0 0 0 0 a. What is the payback period for this new center. (1 mark) b. Calculate the net present value using a cost of capital of 15 percent. Should the project be accepted? (1 mark) I a. What is the payback period for this new center. (1 mark) b. Calculate the net present value using a cost of capital of 15 percent. Should the project be accepted? (1 mark)