Question
A firm invested cash Rs.200,000 on a project. It is forecasted that the following cash flow will be generated by this project in the coming
A firm invested cash Rs.200,000 on a project. It is forecasted that the following cash flow will be generated by this project in the coming 5 years. The firm’s required rate of return is 12%.
Year Cash Inflow
1 Rs. 50,000
2 50,000
3 75,000
4 125,000
5 75,000
Required: Use the above information to calculate
- Payback period
- Discounted payback period
- NPV
- Profitability Index
- IRR
Step by Step Solution
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Step: 1
To calculate the payback period discounted payback period NPV profitability index and IRR for this project we will use the provided cash inflow and th...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
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