suppose the project had involved replacement rather than
expansion of existing facilities. Describe briefly how the...
2 } / years DO,000 100,00 1 Module #5 - Indian Citrus NPV Analysis year o year I year 2 year} Initial Net Innestment -580,000 Net Opg Cash Flow (190,740 112,500 149,100 131,460 After thx Salvage value Recovery of NWC Net Anninal (ash flow -50,000 10,740 92,500 149,200 201,460 PV F at 100% WACC 0.909 10.826 0.751 0.683 PV at 100% - 580,000 3,400 159,09 112,472 151360 wer 16323 IRR 10.21% Pay back period : Cumplative cash flow -580,000 -389,260 -196,760 -47,060 154,400 Pay back period 3+(47060 154,400 The project can be undertaken as NPV is positive. 3.3 years TRR 10%> WACC 10010