Dan is considering a project which would cost ₵6 ,000 now. The annual benefits, for four years, would be a fixed income of ₵ 2,700a year, plus other saving of ₵ 800 a year in year 1, rising by 5% each year because of inflation. Running costs will be ₵ 800 in the first year, but would increase at 10% each year because of inflating labour costs. The cost of capital is 10%
Required
Calculate the net cash flows 6marks
Calculate the net present value 6marks
Calculate the IRR
