Gold Plantation is planning to invest in a new palm oil plantation estate. The land is...
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Gold Plantation is planning to invest in a new palm oil plantation estate. The land is purchased with a cost of RM 1.0 million. During the first year, the cost of the land treatment and palm oil tree plantation is RM400,000. The operating cost is RM120,000 per year. The revenue is expected to accumulate in year 4 until year 20 with the value of RM500,000 yearly. Draw a cashflow diagram. Calculate the net present value (NPV) and determine the payback period for the investment. Assume the interest rate is 8%. You must show the step-by-step calculation Gold Plantation is planning to invest in a new palm oil plantation estate. The land is purchased with a cost of RM 1.0 million. During the first year, the cost of the land treatment and palm oil tree plantation is RM400,000. The operating cost is RM120,000 per year. The revenue is expected to accumulate in year 4 until year 20 with the value of RM500,000 yearly. Draw a cashflow diagram. Calculate the net present value (NPV) and determine the payback period for the investment. Assume the interest rate is 8%. You must show the step-by-step calculation
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To calculate the net present value NPV and determine the payback period for the investment in the palm oil plantation estate we need to consider the c... View the full answer
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