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Question 2 - Parchment Enterprises Parchment Enterprises is oonsiden'ng an investment project that will oust $230ll. It has an economic life of 4 years with

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Question 2 - Parchment Enterprises Parchment Enterprises is oonsiden'ng an investment project that will oust $230ll. It has an economic life of 4 years with no expected scrap yalue. Depreciation will be charged at $40,00 each year and the tax rate is 3%. Undertake the following: a} Complete the 'Cash Flow Analysi s Table' provided in Appendix. b} Using a cost of capital of 1D 96, calculate the project's NP'H'L Is it a protable project? c] Calculate the project's NW by using a east of capital of 3% and 12%. Does your decision change when the cost of capital changes? d} Identify two methods to manage interest rate risk. e] Briey explain Liquidity risk and its components. How can the organisation attempt to assess these risks? f] Create a process to minimise liquidity risks for the organisation

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