(15 Mark) Problem 1 A proposed project has the following data: e Three years ago an initial fixed investment equals $200,000 and the working capital investment equals $80,000 are required to start up the project. $200,000 was invested for research and development two year ago. $100,000 was invested for research and development one year ago. The research is now completed, as a result of this research, annual savings will result in the coming years as shown in the following table 1 2 to 4 80,000 70,000 Year Cash Flow 5 to 8 60,000 9 to 13 13 to n 40,000 30,000 n+1 20,000 Final salvage value of $20,000 ccented knowing that DCFRR equals 15% (15 Mark) Problem 1 A proposed project has the following data: e Three years ago an initial fixed investment equals $200,000 and the working capital investment equals $80,000 are required to start up the project. $200,000 was invested for research and development two year ago. $100,000 was invested for research and development one year ago. The research is now completed, as a result of this research, annual savings will result in the coming years as shown in the following table 1 2 to 4 80,000 70,000 Year Cash Flow 5 to 8 60,000 9 to 13 13 to n 40,000 30,000 n+1 20,000 Final salvage value of $20,000 ccented knowing that DCFRR equals 15%