VP Manufacturers is considering renovating their offices at their Durban head office.

$3\mathrm{.}1$ Use the generated information to calculate the NPV of the project, to decide whether to go ahead with

the project.

$(20$ Marks$)$

Investment required R $200000$

Expected economic lifetime $5$ y ears.

Minimum required rate of return $10\%$

Net annual cash inflows

$1$st year R $40000$

$2$nd year R $100000$

$3$rd year R $90000$

$4$th year R $40000$

$5$th year R $30000$