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Question no 15: Motherland Company Ltd plans to invest Rs.250000 in a project for which the following returns and abandonment values are predicted. Its cost
Question no 15: Motherland Company Ltd plans to invest Rs.250000 in a project for which the following returns and abandonment values are predicted. Its cost of capital is 18% per annum. Advise the company. Year 1 2 3 4 5 6 OWN Return (Cash flow) 40000 60000 100000 100000 100000 100000 Abandonment value 225000 180000 160000 150000 125000 nil
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