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Question1 Brar Project This company is planning to invest in a project calledBrar. The management accounting department received the following information Capex Project period Revenue

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Question1 Brar Project This company is planning to invest in a project calledBrar. The management accounting department received the following information Capex Project period Revenue Supplies expense Salary Utilities Discount Rate Sale of asset@end of project $4000 Net working Capital The company's tax rate is 17%. The project also earned $3200 as $24000 6 years $7000 500 1500 800 10% $4500 interest revenue. The capital expenditure is depreciated using straight line method over the project and will have a residual value of $5000 the company will have to a rent for $1000 during the project life. REQUIRED a) Calculate the initial investment b) Calculate each year cash flow c) Calculate the terminal value of the asset used d) Calculate the NPV e) Calculate the Profitability Index [PI]

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