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iThemba Ltd is considering undertaking a five years project, which will involve an initial outlay of R500,000. The project...

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iThemba Ltd is considering undertaking a five years project, which will involve an initial outlay of R500,000. The project has the following cash flows associated with it: End year 1 2 3 4 5 cash inflow 300,000 400,000 100,000 50,000 45,000 cash outflow 90,000 100,000 175,000 35,000 20,000 a) What is the payback period for this project? b) If a rate of 20% is considered; what is the net present value (NPV) & the profitability index PI of the project? b) Is the project worthwhile for selection? Explain.

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Let s calculate the payback period net present value NPV profitability index PI and determine whether the project is worthwhile for selection based on View the full answer


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College Algebra

College Algebra

ISBN: 9780134453262

7th Edition

Authors: Robert F Blitzer

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Question Details
Chapter # 6
Section: Exercise 6.3
Problem: 28
Posted Date: September 20, 2023 08:22:17
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