QUESTION ONE $(25$ Marks$)$

XYZ Corporation is considering a capital budgeting project and requires a detailed analysis. The company has provided

you with the following financial information and ratios:

Return on Investment $($ROI$)$: $15\%$

Payback Period: $3$ years

Net Present Value $($NPV$)$: R$50,000$

Internal Rate of Return $($IRR$)$: $12\%$

Cash Flows are as follows: Year $1$: R$20000$; Year $2$: R$30000$; Year $3$: R$40000$

Required:

$1\mathrm{.}1.$ Calculate the initial investment required for the project.