1. In the following, compute the Net Present Value (NPVs) of the three projects for each of the possible cash flows. ( 10 Marks )

Particulars Project Education (Rs. 000s) Project Oil & Gas (Rs 000 s) Project Hospitals (Rs. 000s)

Initial Cash Outflows (T = 0) 30 50 30

Cash inflows estimates _ _ _

(T = 1-10)

Worst 5 3 8

Most likely 8 14 10

Best 15 37 20

Cost of Capital 14% 20% 16%

Economic life (years) 10 10 10

A) Select the best Project under the given circumstances. Prepare a short report to CFO and validate the statement of choosing the best project. If there was no Global pandemic would your projections get changed.

(SUBJECT: CORPORATE FINANCE)