Question
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 Net Present Value (NPV)
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