You are assessing an investment project being considered for implementation. The cash flows of the project are shown in the table below.

Year	cash outflow	Discount Factor
0	$ (350,000)	1.0000
1	0	0.9259
2	190,000	0.8573
3	165,000	0.7938
4	120,000	0.7350

Required: Complete the table and compute,

2. The Discounted Payback Period [6 marks]
4. The Net Present Value [5 marks]
6. The Profitability Index [3 marks]
8. Would the project be accepted for implementation? State Reason [2 marks]

B. Assume you have received the following partially completed cash budget for The True Test Company. It is noted that the company has a beginning cash balance in January of $10,000, however, a minimum balance of $20,000 will be used from that point forward. The firm is able to access short-term borrowing at 12% per annum (or 1% per month)to be paid monthly. The interest on any short-term borrowing is paid in the month after it is incurred.

THE TRUE TEST COMPANY
CASH BUDGET Jan - Apr 2021
	January	February	March	April
	$	$	$	$
Total cash receipts	49,000	42,000	43,750	42,750
Total Cash Disbursement	41,025	45,425	36,575	45,575
Net change in cash for the period
Plus Beginning cash balance
Less: Interest on short-term borrowing
Ending Cash balance before short-term borrowing
New financing needed
Ending cash balance
Cumulative Borrowing

Required: Complete the table showing the Cash Budget for the period January thru April

[14 marks]