Mr. Parekh has invested 50,000 on Xerox Machine on 1st Jan 2012. He estimates net cash income from Xerox Machine in next 5 years as under.
| Year | Estimated Inflows |
| 2012
2013 2014 2015 2016 |
12,000 15,000 18,000 25,000 30,000 |
At the end of fifth year, machine will be sold at scrap value of 5,000. In addition to investment, working capital is 10,000. Advice him whether his project is viable, considering interest rate of 10% p.a.
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