26 2021 You are the Chief Financial Officer at Infosys Ltd., which is considering the following...
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26 2021 You are the Chief Financial Officer at Infosys Ltd., which is considering the following two mutually exclusive projects. All amounts are in Indian Rupees. Year 0 1 2 3 4 5 investment. 71-2025 Cashflow (Project A) Cashflow (Project B) -50,00,000 42,00,000 21,00,000 18,00,000 18,00,000 15,00,000 10,00,000 7,50,000 8,00,000 6,00,000 13,00,000 21,00,000 Whichever project you choose, if any, you require a 16 percent return on your a. If you apply the payback criterion, which investment will you choose? Why? [2] b. If you apply the discounted payback criterion, which investment will you choose? Why? [3] 05/21-2021mb21759-82671 1671-2023/05/21-2021mb21759-82 c. If you apply the NPV criterion, which investment will you choose? Why? [3] d. Based on your answers in (a) through (e), which project will you finally choose? 21mb217 26 2021 You are the Chief Financial Officer at Infosys Ltd., which is considering the following two mutually exclusive projects. All amounts are in Indian Rupees. Year 0 1 2 3 4 5 investment. 71-2025 Cashflow (Project A) Cashflow (Project B) -50,00,000 42,00,000 21,00,000 18,00,000 18,00,000 15,00,000 10,00,000 7,50,000 8,00,000 6,00,000 13,00,000 21,00,000 Whichever project you choose, if any, you require a 16 percent return on your a. If you apply the payback criterion, which investment will you choose? Why? [2] b. If you apply the discounted payback criterion, which investment will you choose? Why? [3] 05/21-2021mb21759-82671 1671-2023/05/21-2021mb21759-82 c. If you apply the NPV criterion, which investment will you choose? Why? [3] d. Based on your answers in (a) through (e), which project will you finally choose? 21mb217
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