VP Manufacturers is considering renovating their offices at their Durban head office. 3.1 Use the generated...

Transcribed Image Text:

VP Manufacturers is considering renovating their offices at their Durban head office. 3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead with the project. Investment required Expected economic lifetime Minimum required rate of return R200 000 5 years. 10% Net annual cash inflows 1st year 2nd year 3rd year 4th year 5th year R40 000 R100 000 R90 000 R40 000 R30 000 VP Manufacturers is considering renovating their offices at their Durban head office. 3.1 Use the generated information to calculate the NPV of the project, to decide whether to go ahead with the project. Investment required Expected economic lifetime Minimum required rate of return R200 000 5 years. 10% Net annual cash inflows 1st year 2nd year 3rd year 4th year 5th year R40 000 R100 000 R90 000 R40 000 R30 000