Q 13 Jigger Ltd is considering undertaking project X, which will involve an initial outlay of 600k The project has the following cash inflows associated with it Project X Year 1 100,000 Year 2 200,000 Year 3 300,000 Year 4 400,000 What is the NPV of project X if a 12 discount rate is used a) A negative NPV of 118,000 b) A positive NPV of 718,000 c) A positive NPV of 200,000 d) A positive NPV of 118,000

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Question: Q 13 Jigger Ltd is considering undertaking project X, which will involve an initial outlay of 600k. The project has the following cash inflows associated

Q 13

Jigger Ltd is considering undertaking project X, which will involve an initial outlay of 600k. The project has the following cash inflows associated with it:

	Project X
Year 1	100,000
Year 2	200,000
Year 3	300,000
Year 4	400,000

What is the NPV of project X if a 12% discount rate is used?

a)	A negative NPV of 118,000

b)	A positive NPV of 718,000

c)	A positive NPV of 200,000

d)	A positive NPV of 118,000

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