After-tax cash flows: Year 1 2 3 4 Project Alpha R 0 37 000 72 400...
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After-tax cash flows: Year 1 2 3 4 Project Alpha R 0 37 000 72 400 246 000 Project Omega Both projects require an initial investment of R235 400 and the cost of capital is 12%. As the project manager of Delta Construction Ltd. you are required to: Calculate the Net Present Value (NPV) for both projects. Recommend, with reasons which project should be chosen R 72 000 72 000 72 000 72 000 After-tax cash flows: Year 1 2 3 4 Project Alpha R 0 37 000 72 400 246 000 Project Omega Both projects require an initial investment of R235 400 and the cost of capital is 12%. As the project manager of Delta Construction Ltd. you are required to: Calculate the Net Present Value (NPV) for both projects. Recommend, with reasons which project should be chosen R 72 000 72 000 72 000 72 000
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Answer rating: 100% (QA)
To calculate the Net Present Value NPV for both projects well discount the ca... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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