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A firm invested cash Rs.5,500,000 on a project. It is forecasted that following cash flow will generate by this project in coming 5 years. Firm
A firm invested cash Rs.5,500,000 on a project. It is forecasted that following cash flow will generate by this project in coming 5 years. Firm cost of capital is 18%. Tax rate is 35%
Year | EBITDA |
1 | 1,100,000 |
2 | 900,000 |
3 | 1,050,000 |
4 | 4,000,000 |
5 | 2,000,000 |
Evaluate the project by below mentioned methods and report the conclusion.
Calculate Discounted Payback Period
A. | It's less than 4-years | B. | It's equal to the Payback Period. | C. | It's more than 5-years |
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