Question 1(2 points)Al Jaffilia Cement Industries is considering investment in a new cement plant which isexpected to cost AED 40 million. The company has prepared a business plan based onwhich the project is expected to have annual cash flows over its life of 10 years as shown inthe table below. The Companyâ€™s cost of capital which will be the discount rate is 12%.Year12345678910Annual Cash Flows(AED million)2356688999Please answer the following questions:(A)(B)(C)(D)(E)(F)Calculate the Payback periodCalculate the Discounted Payback periodCalculate the NPV of the projectCalculate the IRRCalculate the PIGiving reasons, recommend if the company should accept or reject this projectC 3.11 â€“ Appendix III: Assessment Instrument Cover Sheet
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