Question 1 Consider a project with the following cash flows: Year Cash Flow 0 R17,500 1...

Question 1

Consider a project with the following cash flows:

Year	Cash Flow
0	R17,500
1	-80,500
2	138,425
3	-105,455
4	30,030

Required:

1.1.Fill in the following table:

Cost of Capital (%)	Project NPV
0
5
10
15
20
25
30
35
50

1.2.Use the values developed in part (1.1) to draw an NPV profile for this project.

1.3.What is the IRR for this project?

1.4.Describe the conditions under which the company should accept this project.

Expert Solution

jeff jeffy answered 10 months ago

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