A Capital Investment Project Requires an Investment of £145,000 and Has

question 26

Essay

A capital investment project requires an investment of £145,000 and has an expected life of four years. Annual cash flows at the end of each year are expected to be as follows: $$\begin{array} { c c } \text { Year } & \text { Amount } \\1 & £ 35,000 \\2 & £ 45,000 \\3 & £ 55,000 \\4 & £ 50,000\end{array}$$
a.Compute payback assuming that the cash flows occur evenly throughout the year.
b.Compute the net present value of the project using an 8 per cent discount rate.

---

Definitions:

Crisis Type

The classification of a crisis based on its nature and origin, which can include natural disasters, technological failures, or management crises.

Manufacture Crises

Manufacture crises are scenarios where crises are artificially created or exaggerated, often for the purpose of manipulating public opinion or achieving specific objectives.

Brand-relationship

The dynamic between consumers and a brand, reflecting how individuals feel connected and loyal to the brand.

Brand Position

Refers to the distinct place a brand occupies in the minds of its target audience and its differentiation from competitors.