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5. Rajan textile is considering two investments each of which requires an intial investment of Rs 2,50,000. The total cash inflows, which is profits after
5. Rajan textile is considering two investments each of which requires an intial investment of Rs 2,50,000. The total cash inflows, which is profits after taxes and depreciation charges, for each project are given below. (Rajan's cost of capital is 8%) Rank the projects with NPV and IRR method. (10 Marks) 4 6 40,000 7 25,000 Year Project X (Rs) Project Y (R) 1 2 3 40,000 60,000 65,000 75,000 1,00,000 80.000 5 45,000 10,000 70,000 60,000
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