Question
Question 4 Handsome Ltd is considering a project with the following cash flows: Year Cost of Plant Running costs Savings RM RM RM 2020 (1,280,000)
Question 4 Handsome Ltd is considering a project with the following cash flows:
Year Cost of Plant Running costs Savings
RM RM RM
2020 (1,280,000)
2021 480,000 840,000
2022 550,000 980,000
2023 670,000 1,120,000
2024 890,000 1,400,000
Required:
a. Appraise the viability of the proposed project using the Net Present Value method of investment appraisal.
b. State with reasons if the project is worthwhile. (15 marks)
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Auditing Fundamentals In A South African Context
Authors: Gerrit Penning, Rika Butler, Pieter Von Wielligh, Frans Prinsloo
2nd Edition
0190749040, 978-0190749040
