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Question 6 The Department of Human Settlements has contacted Ubuntu builders to provider solar energy. Ubuntu builders has bought a machine to manufacture solar energy

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Question 6 The Department of Human Settlements has contacted Ubuntu builders to provider solar energy. Ubuntu builders has bought a machine to manufacture solar energy batteries to fulfil its contractual obligation with the Department of Human Settlements. The machine has a life span of four years and will be sold for a scrap value of R5 000 000 at the end of its life. Ubuntu builders generate revenue by selling solar energy batteries to the Department of Human Settlements. The required rate of return on the geyser manufacturing machine is 10%. 2 Calculate the net present value (NPV) of the project and advise Ubuntu builders whether they should accept or reject the project based on the NPV

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