Company XYZ considers investing in Project A. Project A requires an initial investment of $560,000 now. The project will
Posted: Tue Jan 18, 2022 1:01 pm
Company XYZ considers investing in Project A. Project A requires
an initial investment of $560,000 now. The project will bring the
following cash inflows: $150,000 in one year, $300,000 in 2 years
and $200,000 in 4 years. The interest rate is 10% p.a. compounded
half-yearly. Should Company XYZ invest in Project A? Show all your
workings. (3 marks)
an initial investment of $560,000 now. The project will bring the
following cash inflows: $150,000 in one year, $300,000 in 2 years
and $200,000 in 4 years. The interest rate is 10% p.a. compounded
half-yearly. Should Company XYZ invest in Project A? Show all your
workings. (3 marks)