Question $2.$

ABC Engineering Service Ltd company considers an engineering project which is expected to generate

a serial of cash flow of $$300,000$ and $$200,000$ and $-$$$500,000$ in year $1,$ year $2,$ and year $3$ respectively.

The initial investment of the project today is $$400,000.$ Assume the required rate of return is $12\%$ for

bearing the project risk. What is the project's net present value?

$(20$ marks$)$