A construction company is planning to invest Rs. 350 lakhs in a new project. The projected earnings
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A construction company is planning to invest Rs. 350 lakhs in a new project. The projected earnings (before depreciation and taxes) are Rs. 140 lakhs, 150 lakhs, 160 lakhs, 170 lakhs, and 180 lakhs over the next five years. The assets will be depreciated at 8% on a Written Down Value basis, and the scrap value at the end of five years is estimated at 20%. The cost of capital is 13%, and the income tax rate is 35%. Calculate the NPV, IRR, payback period, profitability index, and discounted payback period.
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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