Question
1.Samsung Company is considering two important proposals with the following cash flows. Period (year) Project XX Project ZZ Cost (RM) (Initial outlay) Net Cash Flow
1.Samsung Company is considering two important proposals with the following cash flows.
| Period (year) | Project XX | Project ZZ | ||
|
| Cost (RM) (Initial outlay) | Net Cash Flow (RM) | Cost (RM) (Initial outlay) | Net Cash Flow (RM) |
| 0 | 55,000 |
| 80,000 |
|
| 1 |
| 20,000 |
| 38,000 |
| 2 |
| 24,000 |
| 40,000 |
| 3 |
| 18,000 |
| 45,000 |
For each project, compute its net present value using a discount rate of 14%.
Which project should be accepted if the projects are mutually exclusive?
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QS 9000 Handbook A Guide To Registration And Audit
Authors: Jayanta Bandyopadhyay
1st Edition
157444011X, 978-1574440119
