=) The proprietor of XY Mall gets a 5-year bank loan of K50,000 with interest of 20% to finance a project of installing

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The Proprietor Of Xy Mall Gets A 5 Year Bank Loan Of K50 000 With Interest Of 20 To Finance A Project Of Installing 1 (56.13 KiB) Viewed 15 times

=) The proprietor of XY Mall gets a 5-year bank loan of K50,000 with interest of 20% to finance a project of installing energy-efficient lighting. This action saves 10 MWh of electrical energy annually. Electricity is charged at K2.00/kWh and this rate is expected to escalate at 8% per year. The discount rate for project accounting at XY is 30%. (i) Determine the cost of conserved energy for the project and the amount of the annual loan payments. [6 marks] (ii) What is the net present value and the internal rate of return of the project? [6 marks] (iii)Determine if the project to install energy-efficient lighting is viable. [2 marks] (iv) Construct the cash flows of the project by filling in the first three rows (Year 0-2) of Table Q4. [6 marks]