Question: Project A's costs is estimated to be RM800,000, with additional working capital of RM80,000. Part of the project cost is RM150,000 in equipment cost. The

Project A's costs is estimated to be RM800,000, with additional working capital of RM80,000. Part of the project cost is RM150,000 in equipment cost. The project is expected to generate RM250,000 in year one and RM450,000 in year two, RM500,000 in year 3 and final disbursement in year 4 is 30% of the project cost without the equipment cost. In the terminal year, the working capital will be recovered, as well as 20% of the equipment value. Assume the cost of the project of 5.18%.

The Initial Outlay is RM______________.

The terminal value is RM_____________

The PV of the OCF 1 is RM____________.

The PV of the OCF3 is RM____________.

The FV of the OCF2 is RM____________.

he FV of the OCF4 is RM____________.

The Payback Period is ___________ period.

The Discounted Payback Period is ___________ period.

The NPV of the project is RM______________.

The PI of the project is ______________.

The project's EAA is RM______________.

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ANSWER To calculate the initial outlay we need to add the project cost additional working capital and equipment cost Initial Outlay RM800000 RM80000 R... View full answer

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