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Question 4 4.1 The uncertain cash flows for a project are shown in the below table. The analysis period is two years and the MARR
Question 4 4.1 The uncertain cash flows for a project are shown in the below table. The analysis period is two years and the MARR is 8% per year. Determine the expected NPV of this project and make a recommendation on whether or not to start with the project. (14) Year 0 Casflow Probabilty Year 1 Cash flow Year 2 Cash flow Probabilty 20% R 230 000,00 30% R 400 000,00 60% 280 000,00 20% 220 000,00 33% 225 000,00 -R 1 400 000,00 30% R 900 000,00 33% 700 000,00 34% 950 000,00 30% 590 000,00 40% R 1 050 000,00 30% 450 000,00 1 200 000,00 40% Question 4 = 14 marks RR RRRRRR
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