Mwongozo Limited has approached you for advice on an equipment to be purchased for use in a five year project. The investment will involve an initial capital...

      

Mwongozo Limited has approached you for advice on an equipment to be purchased
for use in a five year project.
The investment will involve an initial capital outlay of Shs. 1.4 million and the expected
cash flows are given below:
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The equipment is to be depreciated on a straight line basis over the duration of the
project with a nil residual value.
The cost of capital and the tax rate are 12% and 30% respectively.
Required:
The net present value (NPV) of the investment.

  

Answers


Martin
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marto answered the question on February 12, 2019 at 06:01


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