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? How may quarters beyond three years will be required to cover the cost of GH¢575,000 How many months in all is required until the total cost of GH¢575,000 is covered?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
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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?
  3. How may quarters beyond three years will be required to cover the cost of GH¢575,000
  4. How many months in all is required until the total cost of GH¢575,000 is covered?
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