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A company is considering an investment proposal to install a new machine at a cost of Tk . 1 , 0 0 , 0 0
A company is considering an investment proposal to install a new machine at a cost of Tk Its life period is years with a residual value of Tk The tax rate is percent. The estimated cash flows before depreciation and tax are as follows :
tableYearCFBT Taka
Required Rate of Return is estimated at
Compute the following :
i Pay Back Period, ii Average Rate of Return, iii Internal Rate of Return, iv Net Present Value, v Discounted Pay Back Period and vi Profitability Index.
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