Lakeside will invest R500 000 in inventory if the pizza oven is purchased, to be recovered at the end of the 4-year project. How is this shown in the NPV calculation?

Question

Accepted Answer

Outflow of R500 000 in year 0 and inflow of R500 000 in year 4

Answer

Outflow of R500 000 in year 0 only

Answer

Inflow of R500 000 in year 0 and outflow in year 4

Answer

Outflow of R125 000 every year for 4 years

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Lakeside will invest R500 000 in inventory if the pizza oven is purchased, to be...

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