QUESTION $3$

$(20$ Marks$)$

Apex Industries is considering renovating their offices at the Durban headquarters to improve functionality, aesthetics, and efficiency, while aligning with the company's growth and evolving needs. Use the generated information to calculate the NPV of the project, to decide whether to go ahead with the project.

Investment required

R$190000$

Expected economic lifetime

$5$ years.

Minimum required rate of return

$10\%$

Net annual cash inflows

$1$st year

R$40000$

$2$nd year

R$100000$

$3$rd year

R$90000$

$4$th year

R$40000$

$5$th year

R$30000$