If the project provides a certain amount of annual cash


Wan Co. normally accepts projects earning more than the firm' 14% cost of capital. It is currently considering a project that provides annual cash flow of RM10,000 net of tax and requires an initial investment of RM61.450.

i. Given the above cash flows, how many years would it take for the project to be able to cover costs?

ii. If the project provides a certain amount of annual cash flow for 10 years, what is the minimum annual cash flow the firm should accept to cover costs?

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Financial Management: If the project provides a certain amount of annual cash
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