Northrise University
30029 Kitwe – Ndola Dual Carriage Highway. P.O Box 240271, Ndola, Zambia.
ASSIGNMENT COVER SHEET
Student ID: 1905504
Student Name: Patrick Chibabula
Course Code: FIN303
Course Title: Business Finance
Instructor Name: Mrs. Jessie Mwewa
Essay/Assignment Title: Assignment 2
Due Date: 1st May, 2021
Declaration:
I acknowledge that submitting this document binds me to the following:
To the best of my knowledge, I assert that no part of this assignment has been copied from the work of anyone else, be it another student
or any other author or from any source except where due credit is given in the text below, or has been written for me by someone else
except where the relevant instructors and authorities have explicitly permitted such collaboration.
SIGNATURE: P. Chibabula
Instructor’s Comments:
GRADE [ ]
Assignment 2 2
A. Net Present Value
Year
Units
(w1)
Profit Per
Unit (K)
(w2)
Profit
before
tax (K’
m)
Tax at
15%
(w3)
Profit
After tax
(K’ m)
WACC at
13.5%
(w4)
Present Values
(K’ m)
0
0
x 6.0
0
0
0
0
(65)
1
3,128,571
x 6.48
20.27
(3.04)
17.23 x
0.877
15.11
2
3,128,571
x 6.99
21.89
(3.29)
18.61 x
0.769
14.31
3
3,128,571
x 7.56
23.65
(3.55)
20.1 x
0.675
13.57
4
3,128,571
x 8.16
25.53
(3.83)
21.7 x
0.592
12.85
5
3,128,571
x 8.82
27.59
(4.14)
23.45 x
0.519
12.17
