Styles 2.1.3.1.4.1.5.1.6 1.10. 1.11. 12. 1. 13 1 14.1 15. The following are the figures tabled for decision making whether to invest in it or not: Building costs Kshs. 700.00 Material required Kshs.300,000 Labour costs Kshs.150.000 Architectural and City Council approvals Kshs.50,000 Fixed costs per year Kshs.500.000 Revenues per year Kshs.1,200.000 Life of the Warehouse 4 years Depreciation at 12% per annum on final cost of the project Discounting rate 10% Other information: a) The fixed costs are direct costs of contributing to operating costs. b) Assumption that only cash flows will be used to forecast the project and will occur at the end of the year. e) Provide depreciation for the project. 1. Prepare an estimation of the cash flow for the Chief executive to see before presenting them to the management. 2. Appraise the project using NPV