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01-01-2023
Business

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Instruction I: Work out questions 1. Assume the construction of dam project involves an out lay of Br. 10,000,000. Its expected cash inflows at the end of the year 1 is Br.500,000. Cash inflow decreases every year by Br.30,000. The project has an economic life of 6 years. Required: i. Calculate the NPV of the project if the cost of capital is 10% (5pts). ii. Calculate BCR of the project (5pts) iii. Decide whether the project is accepted or rejected by using both method (2pts).

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