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Refer to the above Tables. Tyler Perry a Movie Producer and Director at Lionsgate Studios is considering investing R12,000 in a project with the following cash revenues and expenses: Revenues Expenses Year 1 R20,000 R18,000 Year 2 R22,000 R19,000 Year 3 R22,000 R20,000 Year 4 R22,000 R17,000 Year 5 R25,000 R17,000 Tyler Perry requires a minimum rate of return of 8%. 1. Calculate the net cash inflows in each of the 5 years. 2. What is the payback period? 3. What is the net present value of the investment?

Refer to the above Tables. Tyler Perry a Movie Producer and Director at Lionsgate Studios is considering investing R12,000 in a project with the following cash revenues and expenses: Revenues Expenses Year 1 R20,000 R18,000 Year 2 R22,000 R19,000 Year 3 R22,000 R20,000 Year 4 R22,000 R17,000 Year 5 R25,000 R17,000 Tyler Perry requires a minimum rate of return of 8%. 1. Calculate the net cash inflows in each of the 5 years. 2. What is the payback period? 3. What is the net present value of the investment?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refer to the above Tables. Tyler Perry a Movie Producer and Director at Lionsgate Studios is
considering investing R12,000 in a project with the following cash revenues and expenses:
Revenues Expenses
Year 1 R20,000 R18,000
Year 2 R22,000 R19,000
Year 3 R22,000 R20,000
Year 4 R22,000 R17,000
Year 5 R25,000 R17,000
Tyler Perry requires a minimum rate of return of 8%.
1. Calculate the net cash inflows in each of the 5 years.
2. What is the payback period?
3. What is the net present value of the investment?

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