KGB Industries is considering an investment in a new project
June 7th, 2024
KGB Industries is considering an investment in a new project. The following information isavailable for the project:Cost of Project:Cost of Capital:Depreciation:Residual Value:Economic Value:Year1234 R120 000R12%Straight-line MethodNil4 Years Accounting Profits (Rands)R23 000R20 000R16 000R12 000 Calculate the following:4.1 Payback PeriodYear 1 4.2 Net present value: will the project be accepted or rejected? Explain. (8)