Question: . Question 1: a. Give at least three distinct definitions of a Project. (5 marks) b. Abuja Guy Nig ltd is considering going into haulage
. Question 1: a. Give at least three distinct definitions of a Project. (5 marks) b. Abuja Guy Nig ltd is considering going into haulage with the acquisition of eight trailer lorries which total cost is N5m. it is projected that each trailer will make cash inflows per annum of N250,000, N310,000.00, N280,000.00 and N120,000.00 and incur cost of N10,000 each per annum within the next4yrs. The firm plans to sell the trailers for N400,000.00 at the end of the fourth year. As a consultant, advise the firm on the viability of this venture using the net present value if the cost of capital is 11.5% and inflation rate is 8%. (10 marks) c. Find the internal rate of return (IRR) of this project proposal. (8 marks) d. The table below shows the cost and net cash inflow of projects suggested to Joy Unltd for execution within the financial year. Determine the projects she can execute using Profitability index if she plans to spend N1.5m on projects for the year. What is the net present value of the selected projects? (7 marks) Project Cost of fundCost(N000)Yr1(N000)Yr2(N000)Yr3(N000)Yr4(N000)A10.5%570210235310180
B11.8%650300250200190
C10.5%430150290150160D10%500250270215130
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