QUESTION TWO A company is considering an investment proposal to install new milling controls. The project will cost Kshs
Posted: Wed Mar 09, 2022 8:45 am
QUESTION TWO
A company is considering an investment proposal to install new
milling controls. The project will cost Kshs 50,000,000. The
facility has a life expectancy of five years and no salvage value.
The company’s tax rate is 40%. The estimated cash flows from
the proposed investment proposal are as follows:
Year
CF Kshs 000
1
13,000
2
14,000
3
18,000
4
23,000
5
25,000
Compute:
A company is considering an investment proposal to install new
milling controls. The project will cost Kshs 50,000,000. The
facility has a life expectancy of five years and no salvage value.
The company’s tax rate is 40%. The estimated cash flows from
the proposed investment proposal are as follows:
Year
CF Kshs 000
1
13,000
2
14,000
3
18,000
4
23,000
5
25,000
Compute: