Question: Based on the table below- please calculate NET PRESENT VALUE USING WACC of 12% Initial investment of R30 000 000-00 Will we invest or reject

Based on the table below- please calculate NET PRESENT VALUE USING

  1. WACC of 12%
  2. Initial investment of R30 000 000-00
  3. Will we invest or reject this project
  4. All numbers below in 000 - millions

Details Year 1 Year 2 Year 3 Year 4 Year 5

Sales 35 000 49 000 53 200 57 400 55 200

Net profit 1 725 7 826 6 292 5 117 6 731

After tax profits 1 242 5 635 4 530 3 684 4 846

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1You are given a job to make a decision on project Y, which is composed of three sub-projects A, B, and C which have NPVs of + $60, -$100 and + $20, respectively. How would you go about making the...

Q:

Present value methods are used to evaluate the feasibility of capital investments such as the purchase of fixed assets. A good investment is one where the present value of the net cash inflows...

Q:

Hi there, Please answer question 3.3 as you have not done so. Question Q3 Read the scenario below and answer the questions that follow: A company is considering investing in a project, Project X,...

Q:

NEED ASAP For Chapter 10 (Relevant Costing Sales Mix) Questions: Product Q Product R Sales Price/unit 21.00 20.00 Direct Material/unit 7.50 6.70 Direct Labor/unit 4.20 5.30 Variable OH/unit 4.30 4.00...

Q:

CASE STUDY Huonville Farming Co. Ltd (HFC) is a company in the aquacultural industry that specialises in farming aquatic organisms. HFC is considering opening a new farm near Huon Valley. This...

Q:

Huonville Farming Co. Ltd (HFC) is a company in the aquacultural industry that specialises in farming aquatic organisms. HFC is considering opening a new farm near Huon Valley. This project would...

Q:

Huonville Farming Co. Ltd (HFC) is a company in the aquacultural industry that specialises in farming aquatic organisms. HFC is considering opening a new farm near Huon Valley. This project would...

Q:

CASE STUDY Huonville Farming Co. Ltd (HFC) is a company in the aquacultural industry that specialises in farming aquatic organisms. HFC is considering opening a new farm near Huon Valley. This...

Q:

CASE STUDY Huonville Farming Co. Ltd (HFC) is a company in the aquacultural industry that specialises in farming aquatic organisms. HFC is considering opening a new farm near Huon Valley. This...

Q:

please show step by step calculations . no excel working Question 3: CLO 4 Capital Investment Decision (20 marks) a) ABC limited company looking to invest in one of the Project cost that project is...

Q:

Bramble Watch Company reported the following income statement data for a 2-year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale...

Q:

Apple Corporation uses customers served as its measure of activity. Its budget assumption and actual customers served are shown below as well as the static budget assumptions for the month...

Q:

25. 1. Open the general ledger accounts and accounts receivable ledger accounts indicated below. 2. Post the entries from the general journal in Problem 7.2B to the appropriate accounts in the...

Q:

WHAT IS the cash flow statement BBINFIT ,AND HOW WE CAN ANALAYSES

Q:

9. Refer to the payoff matrix in discussion question 3. First, assume this is a one-time game. Explain how the $60/$57 outcome might be achieved through a credible threat. Next, assume this is a...

Q:

1. Why do oligopolies exist? List five or six oligopolists whose products you own or regularly purchase. What distinguishes oligopoly from monopolistic competition? LO14.1

Q:

LO14.6 Utilize additional game-theory terminology and demonstrate how to find Nash equilibriums in both simultaneous and sequential games.