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Use the information provided below to answer questions 23 to 25 . The projected annual net cash flows associated with an investment opportunity are shown
Use the information provided below to answer questions 23 to 25 . The projected annual net cash flows associated with an investment opportunity are shown below in Table 4 . The expected rate of return on the investment is 12%. Table 4: Annual net cash flows of the investment opportunity. Question 23 (4 marks) Determine the missing values represented by K,L,M, and N in Table 4. A K=0.8929;L=R267870;M=0.7118 and N=R284720 B K=0.9009;L=R198198;M=0.7312 and N=R219360 C K=0.9174;L=R201828;M=0.7722 and N=R284800 D K=0.8929;L=R267870;M=0.7722 and N=R284800 Question 24 (4 marks) Calculate the total present value of the net cash flows of the investment opportunity. A R989028 B R1 190575 C R1088510 D R1199 290 Question 25 (4 marks) If the Net Present Value of the investment opportunity is an unfavourable R99 290, what is the initial outlay? A R1 298580 B R1 200000 C R1100000 D R1 186000
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