Aztec Industries (Pty) Ltd is considering a capital investment project with the following cash flows: Cash flows Initial Investment -R900 000.00 Year 1 R240 000.00 Year 2 R560 000.00 Year 3 R380 000.00 Year 4 R700 000.00 The company has a weighted average cost of capital of 16%. The NPV of the project is closest to: OA. R980 000.00 OB. R353 121.46 OC. R911 277.40 O D.R1 811 277.40 E. None of the above
Aztec Industries (Pty) Ltd is considering a capital investment project with the following cash flows: Cash flows Initial Investment -R900 000.00 Year 1 R240 000.00 Year 2 R560 000.00 Year 3 R380 000.00 Year 4 R700 000.00 The company has a weighted average cost of capital of 16%. The NPV of the project is closest to: OA. R980 000.00 OB. R353 121.46 OC. R911 277.40 O D.R1 811 277.40 E. None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Aztec Industries (Pty) Ltd is considering a capital investment project with the following cash
flows:
Cash flows
Initial
Investment
-R900 000.00
Year 1
R240 000.00
Year 2
R560 000.00
Year 3
R380 000.00
Year 4
R700 000.00
The company has a weighted average cost of capital of 16%.
The NPV of the project is closest to:
OA. R980 000.00
OB. R353 121.46
OC. R911 277.40
O D.R1 811 277.40
E. None of the above
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