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You are expected to perform an economic analysis on a project whos projected cashflow for years 1-7 is R850 000.00 with a fixed annual cost

You are expected to perform an economic analysis on a project whos projected cashflow for years 1-7 is R850 000.00 with a fixed annual cost of R95 000.00. The cash flow remains constant for the remaining 7 years (year 8-14), however, the operating cost balloons to an annual cost of R115 000.00. If the invested amount is R 2 500 000.00, determine: a) The net present value of the project after 14 years. b) Plot the net present value of project and note how long it takes the project to break even.

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