Question $1$:

Consider yourself a financial manager of Zeba Group, you are given an investment that costs $$100,000$ and has a cash inflow of $$25,000,$$$32,000,$$ $40,000,35,000$ for first $4$ years respectively. The investment requires a flowing cost of $$2000$ per year to keep the project running. The required return is $9\%,$ and required payback is $4$ years.

a$.$ Draw the net cash flow due to the proiect

b$.$ What is the payback period?

c$.$ What is the discounted payback period?

d$.$ What is the NPV$?$

e$.$ What is the IRR?

f$.$ Should we accept the project or reject it$?$