Izingubo Ltd: at the end of year 2, the PV of the remaining project cash flows at 18% is about R9.57 million and the abandonment value is R6 440 182. What should be done?

Question

Accepted Answer

Continue the project, because the PV of future cash flows exceeds the abandonment value

Answer

Abandon the project

Answer

The decision cannot be made

Answer

Abandon, because the government has not introduced import duties

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Izingubo Ltd: at the end of year 2, the PV of the remaining project cash flows a...

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