A car manufacturer has decided to make a significant investment into expanding its presence in Africa by setting up a large assembly facility in...

A car manufacturer has decided to make a significant investment into expanding its presence in Africa by setting up a large assembly facility in Kenya. It has estimated its initial set up costs to be in the region of Kenya Shillings 6,398M.

Forecast net income from the project is detailed below:

Year 1 Kenya Shilling 1,400M

Year 2 Kenya Shilling 1,450M

Year 3 Kenya Shilling 1,550M

Year 4 Kenya Shilling 1,625M

Year 5 Kenya Shilling 1,480M.