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Bel Ltd has approached you for advice on an investment project that the company intends...

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Finance

Bel Ltd has approached you for advice on an investment project that the company intends to undertake from 1st April 2022. The investment will involve an initial capital outlay of sh.1.4 million and expected annual net cash flows are given below: Year Net Cash Flows sh. 1 800,000 2-8 750,000 9-12 - 13-18 600,000 19 to infinity 500,000 The projected net cash flows are expected to be realized at the end of each year. The discount rate is 12%. Required: The total present value of the project 4 marks The net present value of the project 2 marks

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