A company is considering two mutually exclusive project with the following details: Particulars Project E Project F

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● A company is considering two mutually exclusive project with the following details:

Particulars Project E Project F Life of the project (years) 4 5 Initial Investment (`) 22,000 27,000 Net Cash Flow (`)

Year 1 11,000 18,000 Year 2 14,000 16,000 Year 3 17,000 16,000 Year 4 19,000 12,000 Year 5 - 10,000 Cost of capital of the company is 10%.

Calculate NPV of the projects and recommend the projects that can be accepted.

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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