Question
Ventures Capital, a key distributor of Voltic Water and other assorted products is considering investing Ghc335,600 in a project at Kasoa with a five year
Ventures Capital, a key distributor of Voltic Water and other assorted products is considering investing Ghc335,600 in a project at Kasoa with a five year life. The project will result in an increase in the company's turnover of Ghc350,000 at additional fixed cost of Ghc110,000 and a variable costs ofGhc150,000.
At the end of the project in five years time, the assets will be sold for Ghc35,000.The company's required rate of return is 10%. Assuming you are the financial director of such company:
(a) How will you determine the Net Present Value of the project of Ventures Capital?
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