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Question 3: 6 Marks One project has the following benefits and cash flows at the discount rate of 10% Benefits Costs 0SR /Month for year

Question 3: 6 Marks One project has the following benefits and cash flows at the discount rate of 10% Benefits Costs 0SR /Month for year 1 300SR /Month for year 1 Your registration no./5000 Such as if reg. no. is 3704978 then 3704978/5000 = 740 SR 740 SR /Month for year 2 250SR /Month for year 2 Your registration no./6000 ?SR /Month for year 3 200SR /Month for year 3 Your registration no./7000 ?SR /Month for year 4 150SR /Month for year 4 Your registration no./8000 ?SR /Month for year 5 100SR /Month for year 5 A: Calculate yearly cash flows and NPV in Excels spreadsheet. B: What will be effects on NPV if there is a reduction of 100 SR monthly benefits in year 2 to 5 and 50 SR per month increase in cost from year 1 to 5.

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