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Gumede (Pty) Ltd has the opportunity to invest in a project with the following estimated future cash flows: Year 1 2 3 4 5

Gumede (Pty) Ltd has the opportunity to invest in a project with the following estimated future cash flows: Determine the following for the project: 14.1 Net present value. 14.2 The payback period. (10) (10)

Gumede (Pty) Ltd has the opportunity to invest in a project with the following estimated future cash flows: Year 1 2 3 4 5 R240 000 R300 000 R400 000 R320 000 R180 000 The cost of the project is R800 000. The company's required rate of return (cost of capital) is 14%. The project has a zero residual value. Ignore taxation. Determine the following for the project: 14.1 Net present value. 14.2 The payback period. (10) (10)

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