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A District Assembly is considering establishing a wood processing plant under the One- District-One-Factory programme. The initial cost estimation for the plant is GH¢ 500,000. The District has secured
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32 votes
32 votes
A District Assembly is considering establishing a wood processing plant under the One- District-One-Factory programme. The initial cost estimation for the plant is GH¢ 500,000. The District has secured funds at an annual interest rate of 30%. The expected annual free cash flows from the plant are as follows:

1.
a) Calculate the payback period for this project.
b) What does this figure in (a) mean?
c) Explain the term Net Present Value
d) What is the NPV of the above project? Interpret your result.

User Jjed
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1 Answer

18 votes
18 votes

Answer:d

Step-by-step explanation:

User Andrew Bezzub
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