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Yellow Stone Ltd has made an initial investment of R 5 0 0 0 0 0 in a new project. The firm s cost of
Yellow Stone Ltd has made an initial investment of R in a new project. The firms cost of capital is The investment is expected to generate the following cash inflows over the next five years:
Year : R
Year : R
Year : R
Year : R
Year : R
The NPV is ; therefore, the investment should
a
R; not be undertaken.
b
R; be undertaken.
c
R; not be undertaken.
d
R; be undertaken.
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