QUESTION 6: Capital Budgeting You have an opportunity to invest in an income generating asset at an initial cost of N$80 000. The cash flow generated from this asset is N$30 000 for the first three years and due to normal wear and tear, only N$20 000 in the next two years, after which it can be sold to a scrap dealer for N$10 000. The cost of capital is 12%. Use the relevant Interest Factors provided in Question 5 above to determine: 1) the net present value (NPV) ii) the discounted payback period iii) the Productivity Index (PI) iv) Would you consider doing this investment? Why? (14)