Reference no: EM133151004

Question - A new company that ventures into the production of footwear has a net profit of 150,000.00 from year 1 to year 5; depreciation of L40,000.00 per year projected over 5 years; a total initial investment of L500,000.00, and a minimum acceptable rate of return of 18%.

Required -

1. Calculate the cash flow.

2. Calculate the internal rate of return (IRR).

3. Calculate the net present value of the case (VPN).

4. Conclusions: it consists of expressing, in a paragraph, what is the most significant learning of the investigation. This section must be analytical, reflective and of its own authorship.

5. Lessons learned: consists of the knowledge acquired about the case, associated with one or several experiences, through reflection and critical analysis of the factors that may have positively or negatively affected the exposed situation.