Consider an investment project that requires an investment of £145000 in moment zero with the expected stream of cash flows (CF) for the next five years as follows: Year | CF(£) 75000 92000 101000 125 000 140000 1 2 3 4 5 Assuming a discount rate of 12%, the net present value of the project and the discounted payback period are respectively: 9. £ 242266 and 1.50 years b. It is not possible to complete with given information and 1.84 years

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider an investment project that requires an investment of £145000
in moment zero with the expected stream of cash flows (CF) for
the next five years as follows:
Year | CF (£)
1
ا حواس
2
3
4
5
75000
92000
101000
125 000
140000
Assuming a discount rate of 12%, the net present value of the project
and the discounted payback period are respectively:
a. £ 242266 and 1.50 years
b. It is not possible to complete with given information
c. £226474 and 1.84 years
d. £226075 and 2.07 years
Transcribed Image Text:Consider an investment project that requires an investment of £145000 in moment zero with the expected stream of cash flows (CF) for the next five years as follows: Year | CF (£) 1 ا حواس 2 3 4 5 75000 92000 101000 125 000 140000 Assuming a discount rate of 12%, the net present value of the project and the discounted payback period are respectively: a. £ 242266 and 1.50 years b. It is not possible to complete with given information c. £226474 and 1.84 years d. £226075 and 2.07 years
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