Prepare a statement showing the incremental cash flows of the project relevant to a decision concerning whether or not to proceed with the construction of the new plant .

Topic: statement of cash flows of the project

Paper details:

( a ) Prepare a statement showing the incremental cash flows of the project relevant to a decision concerning whether or not to proceed with the construction of the new plant .

( b ) Compute the net present value of the project using a 10 per cent discount rate .

( c ) Compute the payback period to the nearest year . Explain the meaning of this term

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