3. Your company is considering investing $1000,000 in a project that is expected to yield the following cash flow over 4
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3. Your company is considering investing $1000,000 in a project that is expected to yield the following cash flow over 4
company is considering investing $1000,000 in a project that is expected to yield the following cash flow over 4 years life. Assume the company uses an interest rate of 13% p.a. to evaluate its investment. Calculate NPV and decide whether your company should make this investment? No. of Year Cashflow 1 $ 400,000 $ 500,000 $ 300,000 $ 100,000 2 3 4
3. Your