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KGB Industries is considering an investment in a new project. The following information is available for the project: Cost of Project: Cost of

how to calculate the payback method with information: cost of project R120 000 cost of capital 12% and depreciation straight line menthod with no residual value and economic value of 4 years

question calculate the payback period
calculate the the NPV to understand if project will be accepted of rejected
KGB Industries is considering an investment in a new project. The following information is available for the project: Cost of Project: R120 000 Cost of Capital: R12% Depreciation: Straight-line Method Residual Value: Nil Economic Value: 4 Years Year Accounting Profits (Rands) 1 R23 000 2 R20 000 3 R16 000 4 R12 000 Calculate the following: 4.1 Payback Period Year 1 4.2 Net present value: will the project be accepted or rejected? Explain. (8)
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