Question: Windsor Ltd is considering a project, which will involve the following cash inflows and out)flows: Year o 1 2 3 Cash flow -400,000 40,000 300,000

Windsor Ltd is considering a project, which will involve the following cash inflows and out)flows: Year o 1 2 3 Cash flow -400,000 40,000 300,000 300,000 If the cost of borrowing is 15% per annum what is the net present value of the project? Guide: The NPV = PV (Inflows) PV (Outflows or Cost) We accept "deals" where the NPV > 0, and We reject deals where the NPV

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