Question

A project can generate cash inflows for four different periods. These cash inflows are: $1000 after...

A project can generate cash inflows for four different periods. These cash inflows are: $1000 after one year; $8000 after three years; $12 000 after seven years and $10 000 after ten years. The required rate of return is 8.5 per cent per annum.

  1. Calculate the present value

  2. Calculate the present value as the start of Year 1

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