You are the project manager for kpl project and since you don’t sleep much, you get a lot of roject work done. You are recommending a project that cost GH¢575,000; expected inflows are GH¢25,000 per quarter for the first two years and then GH¢75,000 per quarter thereafter Required: What is the total cash flow for the first two years? How much is the total inflow for the year three?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter14: Real Options
Section: Chapter Questions
Problem 3MC: Tropical Sweets is considering a project that will cost $70 million and will generate expected cash...
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You are the project manager for kpl project and since you don’t sleep much, you get a lot of roject work done. You are recommending a project that cost GH¢575,000; expected inflows are GH¢25,000 per quarter for the first two years and then GH¢75,000 per quarter thereafter

Required:

  1. What is the total cash flow for the first two years?
  2. How much is the total inflow for the year three?
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