Question: Given below are the operating cash flows for a new project to be evaluated by Carlton Brothers. ICLO 4) Operating Cash In low $10 SLO

Given below are the operating cash flows for a new project to be evaluated by Carlton Brothers. ICLO 4) Operating Cash In low $10 SLO $10 -S10000 (Initial outlay) (a) Find the Payback Period of the proposed project. (1.5 marks) (b) Highlight the main weaknesses in the payback method. (1 mark) (C) Find the Net Present Value of the Project if the cost of capital for Carlton Brothers is 15% and state it is acceptable. (2 +0.5 = 2.5 marks) (CLO4) iii HI! 7

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