Question: QUESTION 4 [6 MARKS] A project requires an initial investment of P500,000. The following cash flows have been estimated for the life of the project:

QUESTION 4 [6 MARKS] A project requires an initial investment of

QUESTION 4 [6 MARKS] A project requires an initial investment of P500,000. The following cash flows have been estimated for the life of the project: a. The company uses NPV to appraise projects. Using a discount rate of 7%, calculate the NPV of the project and recommend whether the project should be undertaken. (6 marks)

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