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The following financial information has been extracted from Dodoma Urban Water supply and Sanitation Authority (DUWASA) for Kisasa Water Supply Scheme. Based on the

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The following financial information has been extracted from Dodoma Urban Water supply and Sanitation Authority (DUWASA) for Kisasa Water Supply Scheme. Based on the given information determine, Payback period, Breakeven point in TZS as well as net present value and recommend on whether DUWASA should continue with the scheme or not, Use cost of capital of 15%. (15 marks). 1.Investment 2.Receipts (Sales) 3.Cost of sales/variable costs (66.66% of sales) (TZS in '000) Year 0 Years 1-15 (Annuity) (20,000) 18,000 12.000 4. Fixed costs 1,000 5. Depreciation 2,000 6. Taxes 1,000 7. subsidize from 2,500 CDA and DMC

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