5.1 Revision Exercise 1 Smart Centre Smart Centre Ltd can invest in a project with the following estimated future cash flows: R'000 Year 1 R2 400 Year 2 R3 000 Year 3 R4 000 Year 4 R3 200 Year 5 R1...




5.1 Revision Exercise 1<br>Smart Centre<br>Smart Centre Ltd can invest in a project with the following<br>estimated future cash flows:<br>R'000<br>Year 1 R2 400<br>Year 2 R3 000<br>Year 3 R4 000<br>Year 4 R3 200<br>Year 5 R1 800<br>The cost of the project is R8m. Ignore taxation. The company's<br>required rate of return (cost of capital) is 14%. The project has a<br>zero-residual value.<br>Calculate the following for the project:<br>1.<br>Payback period;<br>2.<br>Net present value.<br>

Extracted text: 5.1 Revision Exercise 1 Smart Centre Smart Centre Ltd can invest in a project with the following estimated future cash flows: R'000 Year 1 R2 400 Year 2 R3 000 Year 3 R4 000 Year 4 R3 200 Year 5 R1 800 The cost of the project is R8m. Ignore taxation. The company's required rate of return (cost of capital) is 14%. The project has a zero-residual value. Calculate the following for the project: 1. Payback period; 2. Net present value.

Jun 06, 2022
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