Project Alpha

(no excel, show calculations)

Question 6 [13 Marks] Project Alpha requires an initual outlay of R35,000 and results in a single cash inflow of R56,367 50 at the end of five years Required: 6 1 If the cost of capital s 890, what are Alpha's NPV and Pp ls the project acceptable under each of these techniques? what are Alpha's NPV and Pl d the cost of capital is 12%? Is the project acceptable under this condition? 6 2 63 What is Alpha's payback period? Does payback make much sense for a project like Alpha? Motivate why