Your parents just retired, and their retirement annuity paid out. However, they are uncertain if the money will be enough for retirement, and they investigated a few investment opportunities. The following investment is one of their alternatives and they ask your inputs on the investment and if you think the investment adds value or not. Calculate the NPV to answer the question (Choose the most correct option) Initial capital investment is R990 000. The investment realises a return of R193 500 at the end of every six months for the next three years. Your parents want to earn at least 9.50% per annum (NACSA) on their capital in order to ensure that they at least beat inflation of 8.00%. A.NPV = 47.77 B.NPV = - 134 763.79 C.NPV = 1 980 047.77 D.The investment does not add value and is therefore not acceptable. E.The NPV of the investment is less than zero. F.The investment adds value and is therefore acceptable. G.The NPV of the investment is greater than zero.

Alternatives:

A.B,D B.A,F,G C.C,G D.B,D,E E.A,D F.None of the options provided.