X co. ltd. invests in a new project initial investment 100000 wc requirement 10000 recovered in the full in year 5 cash flow 1 2 3 4 5 20000 8000 35000 43000 24000 rate of investment is 10%

The question seems to be asking for the calculation of the Net Present Value (NPV) of the project. Here are the steps to calculate it:

1. Identify the cash flows: The cash flows are given as 20000, 8000, 35000, 43000, and 24000 for years 1 to 5 respectively. The initial investment is 100000 and there is a working capital requirement of 10000 which is recovered fully in year 5.

2. Calculate the present value of each cash flow: This is done by dividing the cash flow of each year by (1 + rate of investment) raised to the power of the year. The rate of investment is given as 10%, so we use 0.10 in our calculations.

3. Subtract the initial investment and working capital requirement from the sum of the present values of the cash flows: This gives us the NPV of the project.

Here's the calculation:

Year 1: 20000 / (1 + 0.10)^1 = 18181.82 Year 2: 8000 / (1 + 0.10)^2 = 6611.57 Year 3: 35000 / (1 + 0.10)^3 = 26315.42 Year 4: 43000 / (1 + 0.10)^4 = 30963.64 Year 5: (24000 + 10000) / (1 + 0.10)^5 = 21353.63

Sum of present values = 18181.82 + 6611.57 + 26315.42 + 30963.64 + 21353.63 = 103426.08

NPV = 103426.08 - 100000 - 10000 = -6573.92

So, the NPV of the project is -6573.92. Since the NPV is negative, the project is not a good investment.