Question: The financial manager is evaluating a proposal for a new project with the following cash flows: YEAR NET CASH FLOWS 0 -R 3 000 000
The financial manager is evaluating a proposal for a new project with the following cash flows: YEAR NET CASH FLOWS 0 -R 3 000 000 1 R 650 000 2 R 950 000 3 R 500 000 The cost of capital is 11%. The NPV is ... and the IRR is ... a. NPV = -R127 7777; IRR = -16.5% b. NPV = R125 7777; IRR = 14.5% c. NPV = R127 7899; IRR = 16.5% d. NPV = -R125 7770; IRR = -14.5% Question 36 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Find the present value of the following stream of cash flows by assuming that the organisation has an opportunity cost of 11%. Years 1-3 : R25 000 Years 4-7 : R50 000 a. R155 268.41 b. R100 268.41 c. R 71 203.41 d. R174 516.94
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
