Q1. Jolyene company wants to invest in a cement industry. The following information are obtained for...

 

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Q1. Jolyene company wants to invest in a cement industry. The following information are obtained for the evaluation; Cash flows for the first five years are: GHC Year 0 1 3 1,000,000, 100,000 150,000 80,000 120,000 500,000 And after the 5th year, the cash-inflows will be 100,000 per year for the next 15years. If 9% is the discount rate for the first 5years and 10% thereafter, what is the present value of the project. Q2. Enumerate 3 objectives of Business Finance. Q1. Jolyene company wants to invest in a cement industry. The following information are obtained for the evaluation; Cash flows for the first five years are: GHC Year 0 1 3 1,000,000, 100,000 150,000 80,000 120,000 500,000 And after the 5th year, the cash-inflows will be 100,000 per year for the next 15years. If 9% is the discount rate for the first 5years and 10% thereafter, what is the present value of the project. Q2. Enumerate 3 objectives of Business Finance.

Answer rating: 100% (QA)

1 PVAF R For N years 1R 111 RN R Interest rate N No of years PVAF 10 Fpr 5 years 110 1 1 1 10 ... View the full answer