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INF3708
Assignment 2
2023
Unique No.: 513848
Due date: 07 June 2023
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c. Deducting total cash inflows from total cash outflows
d. Interface management
To calculate the net profit for Project A, we need to subtract the total investment from the total
revenue generated over the project's duration.
Total investment for Project A = -R250,000.00
Total revenue for Project A = R95,000.00 + R110,000.00 + R132,000.00 + R166,000.00
Total revenue for Project A = R503,000.00
Net profit for Project A = Total revenue - Total investment
Net profit for Project A = R503,000.00 - R250,000.00
Net profit for Project A = R253,000.00
Therefore, the correct option is:
c. R253,000.00
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To calculate the net profit for Project B, we need to subtract the total investment from the total
revenue generated over the project's duration.
Total investment for Project B = -R300,000.00
Total revenue for Project B = R150,000.00 + R210,000.00 + R120,000.00 + R140,000.00
Total revenue for Project B = R620,000.00
Net profit for Project B = Total revenue - Total investment
Net profit for Project B = R620,000.00 - R300,000.00
Net profit for Project B = R320,000.00
Therefore, the correct option is:
b. R320,000.00
To calculate the payback period, we need to determine the time it takes for the cumulative cash
inflows to equal or exceed the initial investment.
Cumulative cash inflows for Project Y:
Year 0: -R200,000.00
Year 1: R85,000.00
Year 2: R70,000.00
Year 3: R78,000.00
Year 4: R33,000.00
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