Question: hello! please help me with this practice question! it doesnt have any workings and answers for me to revise. Good Day Limited is considering two

hello! please help me with this practice question! it doesnt have any workings and answers for me to revise.

Good Day Limited is considering two (2]- cepilal investment projects. The details are outlined as follows: Project Ace Diamond Estimated lite 3 years 5 years Commencement date 1.1.2013 1.1.2018 Project cost at year 1 $100,000 $100,000 Estimated net cash flows: 8 5 Year: 1 20,000 10,000 2 60,000 40,000 3 40,000 40,000 4 20,000 40,000 5 M 150,000 150,000 The company expects a rate of retum of 12% per annum on its capital employed. Required: (a) Calculate the net present value {NPV} of both projects. [16 malts] (b) Based on the results at part (a). evaluate and decide which project you would recommend, and why. [4 marks] from]: 20 marks]
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