The company JEM KANAM envisages an investment of expansion.
The forecast data are the following (in KF CFA).
Acquisitions of capital assets:
Land		100 000
Constructions1		500 000
Equipement 2		400 000
Working capita annual forcast		30 days of annual turnover HT
Planned production:
First year		20 000	The units
Annual rate of growth		+ 10%
of produced quantities
Absorption capacity of the market		25 000	units
Unit sales price estimate		45
Evaluation of the variable loads		30% of annual turnover
Evaluation of the fixed loads
Annual		500 000
The transfer price of capital assets
At the end of the project:
Land		80 000
Constructions		510 000
Equipment		30 000
Duration of the project		5 years
The company is subject to the I.S. at the normal rate 30%.
1 linear depreciation over 25 years. 2 linear depreciation over 5 years.

The project is funded as follow :

• 30% by selffinancing, cost 4 %
• 25% by bank loan, cost 6 %
• 45% by bond loan, cost 6.5%

1. Determine the cash flows generated by this project.
2. Study the profitability of project using the criteria of the NPV, the IRR, the PI and the PAY BACK.