What is the value of the project

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Question - Beta Ltd. Expects to invest in a project with a project life of five years. The expected future net cash inflows of the project are given below.

Year

Net Cash Flow (Rs. Mn)

1

200

2

200

3

200

4

200

5

200

Required -

1. If the project cost of capital is 10% what is the value of the project?

2. If the project requires an initial investment of Rs.600 million, do you recommend the project to accept?

Reference no: EM132823885

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