Year Net cash flow Figures in S F 2 3 Question 1 (30 marks): A company requires an initial investment of $40000. The estimated net cash flows are as follows: dia PARITY 4 S 6 7 8 7000 7000 7000 7000 7000 8000 15000 10000 9 10000 10 4000 Using 7% as the cost of capital (rate of discount), and 3% inflation, determine the following: 1) Pay-back period 2) Discounted pay-back period 3) Net Present Value 4) Internal Rate of Return (a range is acceptable) 5) Profitability Index 6) Comment on the project, using the top five criteria Do