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Sunshine Company is having a proposal to open new car workshop in Sharjah. The expected cash flow for the next 4 years from this proposal
Sunshine Company is having a proposal to open new car workshop in Sharjah. The expected cash flow for the next 4 years from this proposal would be as followed: Year 1 2 3 Cash flow (AED) 180,000 160,000 110,000 150,000 4 It will require an initial investment of AED 750,000. The company required rate of return is 6%. Required: Calculate net present value & decide whether company should accept or reject the proposal? Why? You should copy (Ctrl-c) and paste (Ctrl-v) the table given below into the answer space. You can then fill in the table with the required information from your work. Cash flow PV factor NPV Year 0 1 2 3 4
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