A corporation plans to invest in a small project which costs a expenditure of s600,000 at Year 1. It intends to finance this project by borrowing from a local which requires the origination fee of Compounded bank financial year with the interest payments are made at a nominal the charges repayment of the principal end of Year 5. The bank compounds an monthly. The MARR of the corporation i 15%.
1. Calculate the total present value of the cash inflows and outflows.
2. Based on the result from 1) find the minimum annual return over the five years that the corporation should generate to make the project viable economically (i.e., total PV 0 after considering the annual retu (Note: use the discount factor table at the last page.)