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QUESTION 1 A project has an immediate cash outflow of $7,000, and then cash inflows of $4,000 in years 1 and 2.If we take the
QUESTION 1 A project has an immediate cash outflow of $7,000, and then cash inflows of $4,000 in years 1 and 2.If we take the cash flows and discount them at 5% and 20%, the following results are gained. Note that in an exam situation a candidate could choose any discount rate to start with. In choosing the second discount rate, though, remember what was said above trying to gain one positive and one negative NPV 10 MARKS
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