Question 3b An initial investment of $8,320 thousand on plant and machinery is expected to generate cash inflows of $3,4

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Question 3b An Initial Investment Of 8 320 Thousand On Plant And Machinery Is Expected To Generate Cash Inflows Of 3 4 1 (20.61 KiB) Viewed 12 times

Question 3b An initial investment of $8,320 thousand on plant and machinery is expected to generate cash inflows of $3,411 thousand, $4,070 thousand, $5,824 thousand and $2,065 thousand at the end of first, second, third and fourth year respectively. At the end of the fourth year, the machinery will be sold for $900 thousand. Calculate the net present value of the investment if the discount rate is 18%. (10 marks)