a) Discounted cash flow analysis takes into account the time value of money. The projected...

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a) Discounted cash flow analysis takes into account the time value of money. The projected cash flow for Project X has been assessed and is given in the following table after allowance for taxation and depreciation (figures in parenthesis denote expenditure): Using a discount rate of 10%, determine the payback time, cumulative present value, discounted net present value of the cash flow and return on investment for Project X. Comment on the viability of the project and risk associated with the project. [8]

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