An organisation is considering a capital investment in new equipment. The estimated cash flows are as follows: Years Cash Flow ($) 0 (240000) 1 80000 2 120000 3 74000 4 40000 5 20000 The capital’s cost of capital is 9%. Required: Calculate the NPV of the project to assess whether it should be undertaken. Also calculate the pay back period for this project .
An organisation is considering a capital investment in new equipment. The estimated cash flows are as follows:
Years Cash Flow ($)
0 (240000)
1 80000
2 120000
3 74000
4 40000
5 20000
The capital’s cost of capital is 9%.
Required: Calculate the
Also calculate the pay back period for this project .
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