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Question 4 3 Google Limited is estimating a new q 3 years project at Of 30 million which is expected preparat to result increase in

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Question 4 3 Google Limited is estimating a new q 3 years project at Of 30 million which is expected preparat to result increase in sales revenue of N$ 20 million in the first. year. N$ 25 million in the second year and N$ 15 million. estimates 60% of revenue in the third The year. company to 2% per annum from the second 29 be operating casts which are cast is depreciation). The company year (5% of operating expected to increase by will need to invest NB 4 million to working capital at the begining of the project will be recorded at the end of the projects. lifespan. The interest can e increase can expect to dispose of the project at the end of its lifespan for N$12 million The cost of capital and tax rate are 12% and 28% respectively Required 4.1 khat is the projects NPV? 4.2 klhat is the project's Accounting rate of of rate rate of return? (18 marks)

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