specify answers according to questions

QUESTION 2 (a) ABC Ltd. has estimated a proposed project's 10 year annual net cash benefit, received at each year end, will be K2,500 with an additional benefit of K5,000 at the end of the tenth year. Assuming that these cash inflows satisfy exactly ABC's required rate of return of 8 percent, calculate the initial outlay. (6 maks) (b) Trends Ltd. is considering an investment that will cost K80,000 and have a useful life of 4 years. During the first two years, the net incremental after-tax cash flows are K25,000 per year and for the last two years they are K20,000 per year. If Trends uses a discount rate of 10%, what is the PBP and the NPV of this investment? (13 marks) (c) XYZ Ltd. is considering a project that calls for an initial cash outlay of K50,000. The expected net cash inflows from the project are K7,791 for each of 10 years. What is the IRR of the project? (6 marks) (Total: 25 marks)