Question 2 Alsaid Ltd is a large retail company investing in a new project that contains the following information: Initial Investment 4,500,000 Life of Project 8 years Estimated annual cash inflow 800,000 per annum Residual Value 200,000 The company's capital cost is 7%, and the hurdle rate is used 9% when evaluating capital projects.

Critically assess the use of the above models in the retail industry/your own sector given any unique industrial factors such as an enterprise size.