Q. Illustrate report on net present value?

The NPV of a project is a positive $56000. This point to that using our cost of capital 10% as our discount rate the project is wealth creating. Nevertheless if the project is considered to be high risk then the cash flows will need to be discounted at a higher rate to take this into account. Additionally to looking at the cash flows and net present value other factors will also need to be considered such as servicing and maintenance reliability of the plant and machinery availability of spare parts retraining of operatives importing and foreign exchange problems if it is being supplied from another country etc.