Question 1 a, b, c and d

Use a spreadsheet to model the scenarios described, then answer the questions that follow. Note that you are only required to submit the answers to the questions for the assignment. Do not submit your spreadsheet Create a single document containing the answers to the questions, convert the document into a pdf document and submit the pdf via myUnisa. Give all numerical answers up to two places after the decimal point. Rates should be given up to two places after the decimal point when expressed as percentages. For example, an answer of 0.075 or 7.5% is tot precise enough Question 1 18/ Consider a six-year investment project that requires an initial investment of R80 000 and will pay out the following at the end of each of the six years. Year Cash inflow 1 R12 000 R15 000 3 RIS 000 R21 000 R24 000 R27 000 Model the project in a spreadsheet and use the spreadsheet to answer the following questions: . Give the net present value (NPV) and the profitability index (PI) of the project assuming a discount Tate of 10.8% per annum. (2) b. Would you regard the investment as good investments? Motivate your answer. c. How would your answers to question a and b change if the discount rate is assumed to be 8.5%? (2) d. Suppose that possible discount rates are 5%, 6%, 7%, ..., 13%. Perform a sensitivity analysis on the NPV and PI of the project for this range of discount rates. Between which two discount rates does the project change from profitable to profitable? Give the NPV and PI values at these two discount