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The table below gives the estimated cash flow for three different projects your company is planning on embarking. The estimate are depicted in South African
The table below gives the estimated cash flow for three different projects your company is planning on embarking. The estimate are depicted in South African Rand Year 0 1 2 Project 1 -R 150 000.00 +R 15 000.00 -R 20 000.00 +R 50 000.00 + R 50 000.00 +R 40 000.00 Table 1 Project 2 -R 160 000.00 +R 13 000.00 +R 20 000.00 +R 55 000.00 +R 53 000.00 +R 30 000.00 Project 3 -R 180 000.00 +R 10 000.00 +R 15 000.00 +R 30 000.00 +R 60 000.00 +R 100 000.00 3 4 5 5 Using the information presented in the above table, perform project evaluation calculations and answer the following questions. 8. Based on the calculated values of NPV, which project would you recommend between project 2 and 3? A. Project 3 because it has higher NPV B. Project 3 because it has less negative NPV. C. Project 2 because it has higher NPV. D. Project 2 because it has less negative NPV|
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