Question Lorey Ltd wants to expand its business, so it is willing to invest R1,000,000. The investment is said to bring an inflow of R120,000 in first year, 280,000 in the second year, 390,000 in third year, 285,000 in fourth year and R465,000 in fifth year. Assuming the discount rate to be 9%. Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 NPV Cash flows -1 000 000 120 000 280 000 390 000 285 000 465 000 Present Values - 1 000 000 110 091.7431 235 670.3981 301 151.5572 201 901.1852 302 218.0946 151 032.9782 Question Lorey Ltd wants to expand its business, so it is willing to invest R1,000,000. The investment is said to bring an inflow of R120,000 in first year, 280,000 in the second year, 390,000 in third year. 285,000 in fourth year and R465,000 in fifth year. Assuming the discount rate to be 9%. - Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 NPV Cash flows -1 000 000 120 000 280 000 390 000 285 000 465 000 Present Values - 1 000 000 110 091.7431 235 670.3981 301 151.5572 201 901.1852 302 218.0946 151 032.9782