Q2: BASF Group has opportunity to use the Retained Earnings (€42056: as shown in the balance sheet 2019) to invest in new project, the following is the cash flow expected in the upcoming for years. (K: discounted rate: 13%)
Year |
Cost |
Cash-In-Flow |
0 |
42056 |
------ |
1 |
----- |
10,000 |
2 |
----- |
15,000 |
3 |
----- |
17,000 |
4 |
----- |
20,000 |
Answer:
Year |
Cost |
Cash-In-Flow |
P.V.C.F |
|
0 |
||||
1 |
||||
2 |
||||
3 |
||||
4 |
||||
Total P.V.C.F = = |
||||
NPV = (1 Mark)
Advise (1 Mark)
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