Calculating the NPV-IRR and payback period

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Reference no: EM131928067

Kodwani Investments plans to open a new shopping mall to be Takondwa, which requires a K10, 000,000 investment at the beginning of the project for construction of the mall. However, the mall will be expanded at the end of year 4, at a cost of K2, 000,000, to meet an expected increase in demand. The K2, 000,000 cash outflow must be included in the cash flows of the project for year 4 when calculating the NPV, IRR, and payback period.

Reference no: EM131928067

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